Moog acquires McKinley Medical for $15 million

By Elaine Rigoli

Tampa, Fla., Aug. 28 - Moog, Inc. said Monday that it closed on a merger of Denver-based McKinley Medical Corp., a subsidiary of McKinley Medical, LLC and affiliate of The Broe Cos., Inc., a private company located in Denver.

Moog paid $15 million in the form of 445,725 shares of Moog class A common stock in exchange for the shares of McKinley Medical.

McKinley Medical designs, assembles and distributes disposable pumps and accessories used principally to administer therapeutic drugs for chemotherapy and antibiotic applications, and post-operative medication for pain management. These medical devices are marketed under the brand names Accufuser and BeeLine.

Sales associated with McKinley Medical products in the previous 12 months were about $5 million, according to a news release.

This acquisition's impact on Moog's earnings per share for the year ending Sept. 30 will be neutral after considering the effects of financing and related purchase accounting adjustments, the release said.

In fiscal-year 2007, Moog's medical devices segment sales will approach $40 million, including $7 million associated with McKinley Medical. The company reaffirmed its projected 2007 operating margins for the medical devices segment at 20% and its projected 2007 earnings per share to a range of $2.21 to $2.29, with a midpoint estimate of $2.25. This represents an increase of 15% over the company's most recent estimate.

Based in East Aurora, N.Y., Moog is a worldwide designer, manufacturer and integrator of precision-control components and systems.

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