Belgian Company Sonaca to Buyout LMI Aerospace

LMI Aerospace has agreed to a buyout by the Belgian company Sonaca Group. The $190 million-dollar merge values LMI shares at $14 apiece, which is a 52% increase from the market closing price. It’s also a 78% increase from the weighted six-month average price. Based in St. Charles, LMI Aerospace supplies components and engineering services to commercial and government aerospace markets. It also fabricates kits and assemblies out of aluminum, alloy, and composite materials.

LMI has been in business for over 68 years and in that time, has acquired several companies, with the most recent being Valent, Inc. in 2012. The deal is expected to close sometime this summer, with a deadline of August 16th. If LMI for some reason backs out of the arrangement, they will be subject to a termination fee in excess of ten million dollars.

LMI will continue operating in its 21 locations under the name LMI Aerospace – a member of the Sonaca group. Its headquater location will still remain in St. Charles. LMI CEO Dan Korte will remain CEO but now report to Sonaca CEO Bernard Delvaux. Senior leadership of LMI will also largely remain unchanged.

The new parent company Sonaca develops and manufactures assemblies for space, civil, and military markets. It is considered a world leader in wing moveables Sonaca produced 220 F-16 aircraft for the Belgian and Danish air forces under a General Dynamics contract.

“This deal brings our combined company to the forefront as a leader in the design and manufacture of complex aerostructures while working to diversify our global customer base,” said Korte.

“In addition, LMI and Sonaca have complementary product portfolios while largely serving different aerospace primes and Tier 1 suppliers around the world, enabling us to better serve our customers.”