Thursday’s news that Isal Amlat Investment Ltd. has agreed to buy 10% of TAT Technologies (TATTF) for 54 million shekels is sweet for investors. Currently TAT is trading pre-market at a market cap of just under $100 million. This deal values the company at about $136 million(at USD/NIS of 3.95), a huge premium to where it’s trading.
TAT Technologies together with its subsidiaries, engages in the manufacture and sale of a range of heat transfer equipment used in mechanical and electronic systems on-board commercial and military aircraft, and other electronic equipment.
The company has continuously shown strong growth. In Q2 ‘07 the company announced results: Net income of $1,923,020 an increase of 30% compared to the net income of $1,481,048 for Q2 ‘06. The company also has a dividend yield over 2.5%.
Factor in this acquisition (vote of confidence) and TAT looks like a nice play for long-term investors looking for some exposure to the aviation industry.
Disclosure: Author has a position in TATTF as of 11/14/07.