Cherokee Nation Industries closed the purchase of Red Wing Products Inc.
The Kellyville-based company manufactures and assembles electronic airplane parts for the Department of Defense and the aerospace industry since 1975.
Financial terms were not disclosed.
Going forward, the company will be known as Cherokee Nation Red Wing, said Bryan Collins, CEO of Cherokee Nation Industries. The change will leverage the strength and reputation of both Cherokee Nation’s name, as well as Red Wing’s.
The 30 employees at Red Wing will be retained, working in the 30,000 SF facility.
“Red Wing currently produces many similar products in the same sector as Cherokee Nation Industries, making it an attractive fit to CNI’s portfolio of businesses,” said Collins. “It gives CNI new capabilities with its machine shop, more production space and an already trained workforce, but also many new opportunities into some areas that CNI has not yet penetrated.”
CNI was established in 1969 to serve as the economic and workforce arm for the Cherokee Nation.
Stilwell-based Cherokee Nation Industries, a wholly-owned company of the Cherokee Nation, possesses a growing aerospace and defense unit employing more than 600 people nationwide. It is outgrowing its space and capacity at the company’s Stilwell facility. That growth has created a considerable need for space, an expanded workforce and value added integration capabilities.
CNI is aggressively seeking to earn $100 million in fiscal year 2009, which ends Sept. 30. Through the first quarter, CNI earned $25 million, Collins said.
While Red Wing and Cherokee Nation Industries share a similar market niche, Red Wing’s competency in producing certain small parts also helps eliminate a considerable amount of parts outsourcing that Cherokee Nation Industries previously engaged in. By acquiring Red Wing, CNI will save about $1 million on outsourced parts, while offering clients more of a “total package” approach.
“These added competencies will help CNI expand its market share and penetrate areas we haven’t been able to, up until now. We also have the opportunity to take Red Wing to an 8(a), tribally-owned status, further enhancing our attractiveness to potential clients,” Collins said.
The Red Wing acquisition adds 30,000 square feet of production space to CNI’s workforce, and approximately 30 employees. Red Wing has nearly 35 years of experience in the aerospace businesses, assembling electronic airplane parts such as wiring, cabling, harnesses, kitting, machined and fabricated electro/mechanical parts and more. Cherokee Nation Industries boasts 40 years of experience in the electrical components field, manufacturing many of the same, or similar, products.
“This is really a perfect fit for our company,” Collins said. “Many of Red Wing’s clients have also been long time customers and business associates of Cherokee Nation Industries and we look forward to continuing those relationships.”
“We are confident the Red Wing acquisition will help continue the growth in our aerospace business sector,” Collins said. “Red Wing has been known for many years for its quality products. With the leadership of CNI and the resourcefulness of the Cherokee Nation, Red Wing will have the support necessary to continue that commitment to their customers in the aerospace community.”