Pro-Dex, Inc. completed its acquisition of Advanced Precision Machining LLC for approximately $8.65 million, funded by $6.65 million in cash from a new term loan and a $2 million seller note. The acquisition expands Pro-Dex's manufacturing capabilities and integrates a key supplier.
Key takeaways
Pro-Dex acquired all membership interests of Advanced Precision Machining LLC, making it a wholly owned subsidiary.
The total purchase price was approximately $8,650,000, paid with $6,650,000 in cash at closing and a $2,000,000 subordinated promissory note.
The seller promissory note bears simple interest at 8% per annum and requires 21 equal quarterly payments of $117,569.54 each over 63 months.
To fund the cash portion, Pro-Dex entered into a Second Amended and Restated Credit and Security Agreement with UMB Bank, N.A., issuing Term Note D for $6,650,000.
The Amended Credit Agreement also extended the maturity date of the existing $11,000,000 Revolving Note from December 29, 2026 to December 29, 2027.
Pro-Dex will obtain a representations and warranties insurance policy with a coverage amount of $2,000,000 related to the acquisition.