LMI Aerospace Cuts FY16 View; To Be Bought By Belgian Aerostructures Firm Sonaca

(RTTNews) - LMI Aerospace Inc. (LMIA), a supplier of structural assemblies, kits and components to aerospace markets, Friday said it now expects fiscal 2016 net sales between $345.7 million and $346.7 million, compared to previous estimate of $345.0 million to $355.0 million.

On average, four analysts polled by Thomson Reuters expect revenues of $350.33 million for the year. Analysts' estimates typically exclude special items.

Adjusted operating profit for the year is now expected to be $13.5 million to $14.5 million, lower than previous estimate of $18 million to $21 million.

The company said its expected results for 2016 were negatively impacted by lower sales primarily due to customer delays, unanticipated engineering changes on a design-build contract, and higher-than-expected medical costs.

LMI expects to release fourth quarter and full-year results for 2016 in March 2017.

Separately, LMI Aerospace said it has entered into a merger agreement to be acquired by Belgium -based aerostructures company Sonaca Group. Under the agreement, LMI shareholders will receive $14 per share in an all-cash transaction.

Sonaca's offer represents a 52 percent premium over LMI's closing share price on February 16, a 63 percent premium over LMI's 3-month volume weighted average price, and a 78 percent premium over LMI's 6-month volume weighted average price.

LMI's independent directors unanimously approved the transaction. The deal is expected to close mid-2017, subject to LMI shareholder approval as well as certain regulatory approvals and other customary closing conditions.

Upon transaction close, LMI will operate as LMI Aerospace - A Member of the Sonaca Group, and Dan Korte will continue to serve as LMI Aerospace CEO and will report directly to Bernard Delvaux, Sonaca chief executive officer.