Air Industries Group, an integrated manufacturer of precision equipment assemblies and components for leading aerospace and defense prime contractors, announces that it has terminated its previously announced sale of its Welding Metallurgy Inc., subsidiary (“WMI”) to CPI Aerostructures Inc (“CPI”).
Air Industries CEO, Luciano Melluzzo stated, “We entered into a definitive agreement on March 21, 2018 for CPI to purchase WMI and anticipated closing the transaction by June. Air Industries gave CPI more than adequate time, access and assistance to close this transaction timely. The contract had a termination date of June 19, 2018 and we granted CPI an extension and offered concessions. It has become increasingly apparent that CPI was simply not going to be able to close this transaction on a timely basis, if at all.”
“We have decided it is in the best interests of Air and our employees to cease efforts in closing the transaction, in accordance with the terms of our agreement. Air Industries and our management team continue to reposition our business to obtain profitability and positive cash flows and we are pleased with the efforts we have taken to-date. All of our businesses are showing signs of improvement. We will announce additional details regarding our repositioning plan during our next quarterly conference call,” added Melluzzo.
Air Industries Chairman, Michael Taglich stated, “We endeavored in good faith to close this transaction, and while disappointed in the distraction this process has created, the company remains confident in the inherent value of WMI. WMI is a good business, a real asset, with some terrific customers and people we value; we are happy to keep it as part of the Air Industries family. We wish CPI, its leadership, employees and shareholders well”.
