Investment Banking - Environmental Tectonics Corporation

Transactions | Infrastructure/Environmental/Water

Client: Environmental Tectonics Corporation
Industry: Infrastructure/Environmental/Water
Transaction Type: Recapitalization
Role: Fairness Opinion

  • Environmental Tectonics Corporation (“ETC”) designs, manufactures and sells software driven products and services used to recreate and monitor physiological effects of motion on humans (e.g. flight simulators) and equipment and to control, modify, simulate and measure environmental conditions (e.g. pharmaceutical sterilizers).
  • Based in Southampton, PA, ETC is a publicly traded company (OTCPK:ETCC) with ~$65 million in annual revenue.
  • With the launch of its NASTAR facility and the ATFS-400 PHOENIX simulator, ETC is targeting tactical flight and space simulation for future growth opportunities.
  • A shift in its strategic business plan and poor earnings during the early 2000’s forced ETC to issue a controlling interest in the Company to H.F. Lenfest in order to shore up its operations.
  • Increased profitability over the last few years has enabled the Company to recapitalize its balance sheet, including repurchasing a significant amount of Mr. Lenfest’s equity stake.
  • In conjunction with the recapitalization, Boenning issued a fairness opinion to ETC’s board of directors.