Moog Completes Acquisition of Genesys Aerosystems for $77.7M

Moog Inc. announced yesterday that it has bought Genesys Aerosystems Group, Inc. (Genesys) and its subsidiaries for approximately $77.7 million.

Moog Inc. (MOG.A) designs and manufactures the “most advanced motion control products for aerospace, defense, industrial and medical applications – applications where precise control of velocity, force, acceleration and fluid flow are critical,” according to the company.

Genesys Aerosystems brings together Chelton Flight Systems, Inc. and S-TEC Corporation, previously doing business as Cobham Avionics, and has 143 employees.

“We’re excited to bring Genesys Aerosystems’ products and people into Moog’s Aircraft Controls Segment,” said Mark Trabert, Moog Aircraft Controls Segment President. “Genesys adds to our product and capabilities portfolio. The product synergies and cultural alignment of our two organizations will enable future growth beyond our current core flight control business.”

In the cautionary statement released by Moog, it highlighted a host of risks to the company that could potentially impact its forward-looking projections.

COVID-19 remains a concern and poses a material risk to Moog’s operational ability. The highly competitive nature of the environment coupled with the cyclicality of the markets in which Moog operates pose additional challenges.

Moog also mentioned that Brexit and the imposition of trade tariffs by the U.S. against various countries could potentially disrupt its forward-looking estimates.

Moog shares are down around 8% year to date. (See MOG.A stock analysis on TipRanks)

On December 3, Cowen & Co. analyst Cai Rumohr reiterated his Buy rating on the stock with a price target of $80. This implies upside potential of around 2% from current levels.

Overall, consensus among analysts is a Moderate Buy based on 1 Buy and 1 Hold. Both analysts have an identical price target of $80 over the next 12 months.