TORONTO -- Firan Technology Group today announced an agreement to acquire Holaday Circuits, a Minnetonka, MN-based printed circuit board manufacturer focused on the aerospace and defense markets.

Closing is subject to approval by US regulators and other customary closing conditions and is expected to take place in the first quarter of 2023.

Under terms of the deal, FTG will acquire 100% of Holaday for cash consideration of approximately C$24 million ($17.8 million), subject to typical closing adjustments. There is also an earn out provision of up to C$6 million ($4.4 million) based on future performance. Holaday had reported annual sales of over C$40 million ($29.6 million) in its audited financial statements prior to the pandemic, dropping to C$30 million during the pandemic.

Wipfli Corporate Finance Advisors, LLC acted as exclusive financial advisor and Messerli Kramer acted as legal counsel to Holaday in connection with the sale. “FTG had identified Holaday as an ideal fit with our product and market focus," said Brad Bourne, president and CEO, FTG. "This acquisition, if completed, will complement FTG’s existing facilities, add new customers and expand our market share in the Aerospace and Defense market.” “The team at Holaday has built a great business with a strong reputation in the industry for quality products and excellent operational performance and we are excited to have them as part of FTG. We intend to continue to operate the business in its current facility.”

Dennis Pulanco, executive vice president, Holaday, said: “With the passing of Marshall Lewis, my business partner for 40 years, it was time for an ownership change at Holaday. It was important to us that a new owner be aligned with our values, and I am pleased with the sale of Holaday to FTG, as I believe FTG will continue to build the business going forward to the benefit of Holaday’s customers, employees and other stakeholders.”

FTG also announces it has entered into a sale/leaseback agreement for the facility in Chatsworth, CA, acquired earlier this year. The closing is subject to completion of due diligence and various closing conditions. Closing is expected in the first quarter of 2023 and proceeds would be approximately C$8.5 million, less commissions and other expenses. The initial lease period will be through 2029, with two additional five-year options to extend the lease.

Last month, FTG also announced a deal to acquire IMI, Inc., a printed circuit board fabricator in Haverhill, MA. That deal is expected to close in the first quarter 2023.

1 CAD = 0.740323