ARC Wireless agrees to take over Advanced Forming, Quadrant Metals

US wireless network component and solutions provider ARC Wireless Solutions Inc (NASDAQ:ARCW) said it would buy metal injection molding (MIM) components maker Advanced Forming Technology Inc (AFT) and holding Quadrant Metals Technologies LLC (QMT) as it plans to convert into a manufacturing holding company and change its name to ARC Group Worldwide Inc.

The move will allow ARC to benefit from a larger manufacturing platform to back the growth of its business and to simplify costs, the buyer said.

Under the definitive agreements, ARC is buying AFT, including its business in Hungary, for USD43m (EUR33m) which it will finance with cash and a convertible promissory note.

For QMT, which holds majority interests in manufacturing businesses FloMet LLC, Tekna Seal LLC, General Flange & Forge LLC and Tubefit LLC, ARC will pay stock in a deal valuing the target at USD31.4m.

It will combine AFT with QMT’s FloMet to form a top global player in MIM, a rapidly growing technology used to create ultra-high tolerance precision metal parts for the medical, automotive, firearms and aerospace sectors, ARC said. The addition of QMT’s other operations would ensure significant presence for ARC in the manufacture and distribution of custom hermetic seals and pipe fittings and flanges.

While developing its manufacturing platform, ARC will continue to grow its wireless business, interim CEO, Ted Deinard, said.

Completion is expected in the second quarter of this year, subject to securing regulatory and shareholder approvals.

After this deal, ARC will have operations in the US, China and Hungary.

Country: Hungary, USA

Sector: Machinery/Engineering

Target: Advanced Forming Technology Inc , Quadrant Metals Technologies LLC Buyer: ARC Wireless Solutions Inc

Deal size in USD: 43m

Air Jordan XIII High