ORBIT INTERNATIONAL CORP. COMPLETES ACQUISITION OF PANEL PRODUCTS, INC.
Hauppauge, New York, January 4, 2022 – Orbit International Corp. (OTC PINK:ORBT) today announced that its newly formed subsidiary, Simulator Product Solutions LLC (“SPS”), has completed its previously announced acquisition of the assets and business of Panel Products, Inc. (“Panel”), a Carson, CA based company founded by Nabil Radi in 1999.
The transaction valued Panel at approximately $6,500,000, subject to adjustment, with $4,000,000 of the purchase price paid in cash at closing, an aggregate of up to $1,200,000 in performance related payments payable at the end of 2022 and 2023, and the issuance to Panel of a 19.9% ownership interest in SPS. The cash payment at closing was funded substantially from Orbit’s cash on hand. In connection with the acquisition, SPS entered into a three-year employment agreement with Mr. Radi to serve as its President. The agreement is subject to a three-year extension at the option of Mr. Radi. In addition, prior to its expiration, the agreement may be terminated by either party under certain circumstances. Upon the conclusion of Mr. Radi’s employment agreement with SPS, Orbit is obligated to purchase Panel’s 19.9% interest in SPS for a minimum of $1,300,000, which amount may be increased by a pre-determined formula based on the future operating results of SPS.
For the last two fiscal years, Panel recorded average revenues in excess of $5,000,000 with profitability that would have been materially accretive to Orbit’s earnings. In addition, SPS will enter 2022 with a backlog acquired from Panel in excess of $3,000,000.
Mitchell Binder, President and CEO of Orbit International Corp. commented, “I am pleased to announce that we have successfully completed our previously announced agreement to acquire the business and assets of Panel, and I am proud to welcome Nabil Radi as our partner and President of our new subsidiary, which will become part of our Electronics Group. We spent considerable time seeking a suitable acquisition and were attracted by Panel’s reputation for quality, integrity and always putting the customer first. Mr. Radi has built an exceptional company with an international reputation over the last 22 years, and we are excited to have joined forces to help accelerate the company’s growth.”
Nabil Radi commented, “When Orbit first approached me, I instantly saw the potential synergies that exist between our companies, and as I got to know the Orbit team better, I knew I had made the right decision to become part of the Orbit family. I am looking forward to continuing to build a world class organization as President of Orbit’s newly formed subsidiary with the support of my new partner; and we already have several strategic initiatives planned for 2022, including an expansion of both our production facilities and capabilities as well as obtaining ISO certification.”
Mr. Binder concluded, “By combining our two organizations we expect to be able to offer both Orbit and Panel customers a broader range of one-stop shopping solutions for their platform certified instrument and simulation needs.”
Founded in 1999, Panel Products, Inc. (www.panelproductsinc.com) designed, manufactured, and sold globally military simulation and training bezels, electronic control assemblies, multi-function displays, and ancillary products and related software solutions.
Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facility in Hauppauge, New York. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, VME/VPX power supplies as well as various COTS power sources.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International’s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit’s reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward- looking statements whether as a result of new information, future events or otherwise.
Chief Financial Officer