-Advertisement-

Ducommun Rejects Activist’s Revised Bid

Aerospace and defense company Ducommun Inc. has rejected private investment firm Albion River’s revised buyout bid, which had raised the offer by 8.3%.

Ducommun (NYSE: DCO) said in a statement on July 25 the new offer “undervalues Ducommun’s mid- and long-term growth initiatives and does not fully reflect the company’s strong record of performance.”

The investment firm had raised its all-cash offer to $65 per share from the $60 apiece proposal that Ducommun rejected in April.

There was no immediate word as to whether Albion River would make a third offer for Ducommun, the oldest continuously operating company in California.

Shares in Ducommun have risen about 30% over the last year and were trading at $64 apiece as of July 26 for a market cap of $942 million (NYSE: DCO)­.

Albion River LLC of Rockville, Maryland owns about 9.2% of Ducommun’s shares.­ The new offer had valued Ducommun at $951 million.

Albion River acquires companies that produce highly technical defense products and services. Its capital comes from a handful of families and select institutional investors.

Founder Darren Farber, who was co-founder of Nawah LLC that focused on infrastructure in the Middle East and Southwest Asia, was a former special advisor to the Deputy Under Secretary of Defense for Business Transformation from 2004 to 2011.

New HQ

Ducommun has moved its headquarters to one of Costa Mesa’s best-known office towers.
The site is the Plaza Tower at 600 Anton Blvd. Ducommun (NYSE: DCO) moved the principal offices from the previous location at 200 Sandpointe Ave. in Santa Ana.

The move was posted in a brief filing with the U.S. Securities and Exchange Commission on June 28. Ducommun had signed a seven-year lease in 2017 at the prior location, ended in May 2024, and with the lease commitment ending, the company decided to move the headquarters for greater efficiency.

The new office was up and running as of July 1. Ducommun declined to specify the size of the new facility, though a real estate insider told the Business Journal it comes to 22,466 square feet.

The new office space is slightly larger than the Sandpointe location. Both buildings fall under the South Coast Metro region.

Ducommun produces complex products and components for commercial aircraft platforms, mission-critical military and space programs, and sophisticated industrial applications. They include interconnect systems, printed circuit board assemblies and integrated electronic, electromechanical and mechanical assemblies among others.

Gold Rush

Ducommun first opened in 1849 in Los Angeles during the Gold Rush. In 2017, it relocated its headquarters operations from a manufacturing plant in Carson to the Santa Ana site. Ducommun is scheduled to release quarterly earnings in early August.

Among recent contract wins, the company said on June 20 that it had received an award totaling over $12 million in revenue for Raytheon’s (NYSE:RTX) TOW missile system.

Want more from the best local business newspaper in the country?

Sign-up for our FREE Daily eNews update to get the latest Orange County news delivered right to your inbox!

Sonia Chung
Sonia Chung
Sonia Chung joined the Orange County Business Journal in 2021 as their Marketing Creative Director. In her role she creates all visual content as it relates to the marketing needs for the sales and events teams. Her responsibilities include the creation of marketing materials for six annual corporate events, weekly print advertisements, sales flyers in correspondence to the editorial calendar, social media graphics, PowerPoint presentation decks, e-blasts, and maintains the online presence for Orange County Business Journal’s corporate events.
-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-