Exhibit 99.1
NEWS RELEASE
Ducommun Incorporated Announces the Completion of Strategic Sale-Leaseback Transaction with CenterPoint Properties
SANTA ANA, Calif., December 20, 2021 (GLOBE NEWSWIRE) – Ducommun Incorporated (NYSE: DCO), a global supplier of innovative electronic and structural solutions for the aerospace and defense industry, completed a sale-leaseback transaction with an affiliate of CenterPoint Properties on December 16, 2021. The transaction involved the company’s wholly-owned subsidiary, Ducommun Aerostructures, Inc., and its industrial property located on Gardena Blvd., in Carson, California (the “Property”). Under the terms of the purchase and sale agreement, the Property was sold for an aggregate cash purchase price of approximately $143 million and generated approximately $110 million in net after-tax cash proceeds.
“I am very pleased about the closing of the sale-leaseback transaction of our Gardena performance center, located in Carson, California, said Stephen G. Oswald, chairman, president and chief executive officer. “Industrial properties in the southern California market are in extremely high demand right now, and the company is taking full advantage of it. The completion of this transaction will bring significant value to the company and its shareholders by monetizing a portion of our legacy CA owned real estate portfolio. This is also excellent news as we now move forward with a stronger balance sheet to drive further improvements in the company.”
A portion of the proceeds from the sale-leaseback will be used to pay down the revolving credit facility utilized to complete the acquisition of Magnetic Seal Corporation (“MagSeal”) that also became effective on December 16, 2021. The MagSeal acquisition further advances the company’s strategy of acquiring high value engineered products that offer customized, proprietary solutions with recurring aftermarket presence. The company intends to use the remaining proceeds from the sale leaseback transaction for further strategic acquisitions, debt repayment and general corporate purposes.
The Property represents approximately 307,000 square feet of industrial space, which the company intends to continue to occupy pursuant to the lease entered into as part of the transaction.
About Ducommun Incorporated
Ducommun Incorporated delivers value-added, innovative manufacturing solutions to customers in the aerospace, defense and industrial markets. Founded in 1849, the company specializes in two core areas – Electronic Systems and Structural Solutions – to produce complex products and components for commercial aircraft platforms, mission-critical military and space programs, and sophisticated industrial applications. For more information, visit Ducommun.com.
About CenterPoint Properties Trust
CenterPoint is an industrial real estate company made up of dedicated thinkers, innovators and leaders with the creativity and know-how to tackle the industry’s toughest challenges. And it’s those kinds of problems—the delicate, the complex, the seemingly-impossible—that we relish most. Because with an agile team, substantial access to capital and industry-leading expertise, those are exactly the kinds of problems we’re built to solve. For more information on CenterPoint Properties, visit centerpoint.com, follow @CenterPointProp on Twitter or engage with us on LinkedIn.
