LONG BEACH, CALIF. — A financial buyer is conducting a due-diligence review of Advanced Technical Products Inc. of Roswell, Ga., for a possible July acquisition, an ATP spokesperson said at SAMPE '99 in Long Beach.
According to Securities and Exchange Commission documents, in late April ATP and an unidentified third party reached a memorandum of understanding calling for a cash deal of $73.5 million to $89.2 million, depending on 1999 profit. The transaction is contingent on a definitive agreement and regulatory and stockholder approval.
ATP units design, develop and manufacture advanced composite products, principally for aircraft and aerospace applications.
A May 27 SEC filing said Nicholas-Applegate Capital Management LP of San Diego acquired 582,200 shares of ATP common stock, a 10.96 percent interest. Nicholas-Applegate would not comment.
Affiliates of Equus Capital Management Corp. of Houston provided major funding in 1995 when James S. Carter headed a management team that established the high-tech business. Carter continues as chairman, chief executive officer and president.
Initially, the team acquired Marion Composites of Marion, Va.; Lincoln Composites of Lincoln, Neb.; and Intellitec of Deland, Fla., from Brunswick Corp.
ATP purchased Lunn Industries Inc. of Glen Cove, N.Y., and Alcore Inc. of Edgewood Md., in 1997 and then succeeded Lunn as a publicly traded entity. In addition, ATP added Brigantine SA in France last year.
ATP employed 1,568 as of Dec. 31 and reported profit of $5.7 million on 1998 sales of $165.1 million.