Com Dev Acquires MESL Microwave

Cambridge, Ontario, Canada, December 12, 2014--Com Dev International has signed an agreement to acquire 100 percent of MESL Microwave for £12.8 million. Headquartered in Edinburgh, Scotland, MESL Microwave Ltd. plays a significant role in the global microwave technology market, designing and manufacturing components and subsystems for the radar, communications, defence and aerospace industries.

The acquisition of MESL Microwave Ltd. also provides the Company with greater access to the aerospace market with microwave component products that are complementary to Com Dev's product offering in the space market. MESL Microwave Ltd. brings agility, knowledge and expertise in the aerospace market, which can be leveraged to gain efficiencies in the space business accoding to the company

 Rob Spurrett, President of Com Dev International Systems, said, "Cross-party support from within government for the UK's Space Innovation and Growth Strategy, and the leadership of the UK Space Agency and Innovate UK have shown us that the UK is serious about exploiting the potential of the space industry for the long term. The UK is a great place to develop new technology thanks to the incentives that are available, and the UK's increasing commitment to the European Space Agency and other international partnerships."

Continuing, Mr. Spurrett said, "Com Dev has been in the UK for several decades, with over 80 percent of the products designed and manufactured in its UK operations being exported around the world."

Michael Pley, CEO of Com Dev International Ltd., commented on the transaction, "We are now moving to a new phase in UK operations. We have seen growth in revenue in our Aylesbury facility over recent years and are anticipating further substantial growth in this supportive environment. We are now well-placed with a foothold close to the space hub in Harwell, England, and with this transaction now in the Scottish space cluster as well. We are here to build upon what we started almost 30 years ago."

The purchase price, which represents an EBITDA multiple of 8.5x projected full year EBITDA is being financed by a combination of cash on hand and additional borrowings under the Company's previously expanded credit facility.  The company expects the transaction, which is scheduled to close December 31, 2014, will be accretive to EBITDA and EPS in fiscal 2015.