The Company Believes that the Combination of EMI and General Microwave Israel (GMIC) Will Form the Largest Independent Microwave Company Outside the United States
LANCASTER, Pa., Sept. 17 /PRNewswire-FirstCall/ -- Herley Industries, Inc. (Nasdaq: HRLY) today announced it has acquired Eyal Microwave Industries ("EMI") a privately held Israeli company in an all cash transaction. Eyal Microwave Industries is a leading supplier of a broad range of innovative, high-reliability, RF, microwave and millimeter wave components and customized subsystems, for the global defense industry. Based in Kibbutz Eyal, the company has approximately 175 employees. EMI includes Eyal Microwave Ltd and its subsidiary Eyal Mag Ltd.Herley Industries, Inc. will acquire EMI through its own subsidiary in Israel, General Microwave Israel Corp. ("GMIC").
Myron Levy, Herley's Chairman and CEO, noted, "EMI is an excellent fit with Herley. Their core capabilities include complex integrated microwave assemblies and "off-the-shelf" components for radar, ESM, ECM and communication systems which will complement and expand our current product line. Our most formidable competitor in Israel, EMI has customers and programs that will further strengthen our already solid presence in the international marketplace."
Mr. Levy continued, "As we have previously reported, GMIC, as a stand-alone, is the most profitable subsidiary within Herley. When combined, GMIC and Eyal will have initial revenues in excess of $40 million per year with excellent prospects for reaching $50 million a year within the next year. By consolidating the companies under GMIC we expect cost savings that will increase their profitability. We believe the combination of these companies will form the largest independent purely microwave company outside of the U.S. and possibly worldwide. I have made three trips to Israel in the last few months to work with Yonah Adelman, GMIC's General Manager, on this acquisition. It is with a great deal of satisfaction that we announce what we believe is an outstanding acquisition for Herley."
Herley Industries, Inc. is a leader in the design, development and manufacture of microwave technology solutions for the defense, aerospace and medical industries worldwide. Based in Lancaster, PA, Herley has eight manufacturing locations and approximately 935 employees. Additional information about the company can be found on the Internet at http://www.herley.com
For information at Herley contact: Tel: (717) 735-8117
Peg Guzzetti www.herley.com
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SOURCE Herley Industries, Inc.