Exhibit 99.1
DUCOMMUN INCORPORATED REJECTS UNSOLICITED REVISED, NON-BINDING
INDICATION OF INTEREST FROM ALBION RIVER
Revised proposal undervalues Ducommun’s mid-
and long-term growth
initiatives and does not fully reflect the Company’s strong record of performance.
Ducommun’s Board and Management remain focused on successfully delivering our Vision 2027 Strategy.
COSTA MESA, California (July 25, 2024) - Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”), a global supplier of
innovative electronic systems and structural solutions for the aerospace and defense industry, today responded to an unsolicited revised, non-binding indication of interest dated July 15, 2024 from Albion
River LLC (“Albion River”), a private direct investment firm, to acquire all outstanding shares of Ducommun for $65.00 per share in cash. The Board of Directors has unanimously determined it is not in the best interests of the Company and
Ducommun shareholders to pursue further discussions regarding the proposal.
Consistent with its fiduciary duties and in consultation with its legal and
financial advisors, our Board of Directors carefully reviewed and considered Albion River’s revised proposal. Following that review, our Board of Directors concluded that the Company’s previously disclosed Vision 2027 Strategy reflects a
substantially better long-term value creation opportunity for Ducommun’s shareholders.
Over the past seven years, our Board and Management team have
effectively transformed the Company’s business with strategic acquisitions of engineered product businesses with high aftermarket mix, implementation of a value-based pricing strategy, significant facility consolidation, improved operations and
customer metrics, a leaner management structure and many other cost reduction actions. Despite the impact of the COVID-19 pandemic and the 737MAX on our markets, Ducommun’s revenue has grown from $551M in
2016 to a new all-time revenue record of $767M in LTM Q1 2024. Also, Ducommun’s EBITDA margins have expanded from 10.1% in 2016 to 14.4% in the first quarter 2024. As a result, the Company’s
shareholders benefitted from an increase in market capitalization from approximately $286M at the end of 2016 to approximately $929M as of July 23, 2024. In addition, the Company managed through the
COVID-19 pandemic and 737MAX with limited impact on its Adjusted EBITDA despite significant deterioration in the commercial aerospace industry. This was accomplished by growing its military and space business
from $278M in 2018 to $421M in 2022 and through proactive cost management.
In December 2022, Ducommun management held an investor meeting to lay out
Vision 2027 and has been executing on that strategy by consolidating its facility footprint, continuing its targeted acquisition program, increasing the revenue proportion of engineered product and aftermarket content, implementing our offloading
strategy with defense primes in high growth segments of the defense budget, and by expanding content on key commercial aerospace platforms. These strategic initiatives already have positioned Ducommun to benefit from the continuing recovery in
aircraft production rates over the next several years. Ducommun’s market capitalization has increased to approximately $929M as of July 23, 2024, a 28% increase in one year. Our Board of Directors and management team expect that, as
previously disclosed in our Vision 2027 Strategy, by 2027 Ducommun will achieve $950M to $1,000M in net revenues (representing a 33% to 40% increase since 2022), with approximately 18% adjusted EBITDA margins. This would represent a gain of
approximately 460 basis points since the end of 2023 and approximately 13% adjusted operating income margins (an increase of approximately 480 basis points since the end of 2023).
