Magnetics Business & Technology - November/December 2022 - 24

INDUSTRY NEWS
Ducommun Acquires MagSeal for $69.5 Million
space product portfolio and increases the company's aftermarket
capabilities and revenue. "
" Ducommun ended the year with a strong backlog as well of
approximately $905 million, with gains driven by a recent uptick
in commercial aerospace orders. For 2021, we posted revenues
of approximately $645 million, led by another record year for
military and space, topping $450 million, along with strong gross
margins. In 2022, with growing travel demand and subsiding
pandemic-related related restrictions, the commercial aerospace
industry should continue its recovery, especially in the narrow
body market. Our longstanding customer relationships with
Boeing, Raytheon, and other leading OEMs, along with our fiveyear
Airbus contract for titanium products awarded in 2021 are
expected to drive stronger performance in 2022 and beyond. "
MagSeal, founded in 1954 and based in Warren, Rhode Island,
revolutionized the mechanical seal industry with the introduction
of its proprietary magnetic seals by incorporating permanent
magnets into their design and manufacture. The company has
since evolved into a provider of high-impact, military-proven
magnetic seals for critical systems in aerospace and defense
applications that are engineered to perform in high-speed, highvibration
and other challenging environments.
Ducommun, a defense and industrial manufacturer based in
southern California, has acquired Magnetic Seal Corporation, a
pioneering developer of engineered magnetic seals for aerospace
and defense applications. The price was about $69.5
million. According to financial details reported in February, the
purchase capped off a strong year for Ducommun and was aided
by netting $110 million in a separate deal to sell and lease back
its property in Gardena.
" I am delighted to welcome the MagSeal business and its team
to Ducommun as we continue our strategy of adding high valueadded
aerospace and defense engineered products with recurring
aftermarket to our portfolio, " said Stephen Oswald, CEO of
Ducommun.
" We are excited to join the Ducommun family. MagSeal's combined
knowledge, experience and expertise to design, prototype,
value engineer and manufacture aerospace quality seal solutions
will complement Ducommun's existing portfolio of engineered
products for the defense industry. With Ducommun, MagSeal expects
to accelerate its growth and expand its focus on innovative
offerings to meet the needs of an evolving military, " said Robert
Garde, MagSeal's president.
" 2021 was a return to growth story for Ducommun and I'm
pleased with how much we accomplished along with positioning
the company for continued success in the years ahead, " said
Oswald in February as he summarized the year's performance.
" In December alone, we netted over $110 million in after-tax
proceeds related to the sale-leaseback of our Gardena, CA
performance center building and land, effectively monetizing and
unlocking its value at record prices to fuel growth and strengthen
our balance sheet. A portion of the proceeds were immediately
deployed for the MagSeal acquisition which brings innovative
engineered sealing solutions to Ducommun, enhances our aeroToday,
it supplies sealing solutions to every branch of the U.S.
military and is entrenched on more than 50 commercial and
military aircraft programs including the AH-64 Apache and CH53K
helicopters, F-15 and F-18 fighter jets, C-130 transports,
A320, B737 and Cessna Citation jets. MagSeal makes a variety
of seals for different applications. Its Model 10, for example, depicted
above and pictured at top, can be manufactured for shafts
up to 5 inches in diameter.
Basically, magnetic seals are rotary shaft face seals. They apply
a rare earth magnetic material as a stator and a rotor with a small
section of carbon press fit into a precision machined steel carrier
or housing. Unlike a spring load, the magnet places a uniform
load across the entire seal face calibrated by a precise air gap
and the magnetizing process of the magnet.
24 Magnetics Business & Technology * November/December 2022
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Magnetics Business & Technology - November/December 2022

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