Woodward, Inc. (NASDAQ: WWD) today announced that on December 27, 2012, it signed a purchase agreement with GE Aviation Systems to acquire the assets of its hydraulic thrust reverser actuation systems (TRAS) business located in Duarte, California (the "Duarte Business") for $200 million in cash, and the parties have entered into a preferred supplier agreement for thrust reverser actuation systems. The transaction is expected to close later today.
"The acquisition of the Duarte Business by Woodward's Aerospace segment provides us with expanded motion control technologies and platforms, more specifically Thrust Reverser Actuation Systems," said Thomas A. Gendron, Woodward Chairman and Chief Executive Officer.
The Duarte Business, which employs approximately 350 people, serves customers such as Boeing, GE, Safran and the U.S. government. Its products are used primarily on commercial aircraft such as the Boeing 737, 747 and 777, and Airbus A320.
The Duarte Business' sales for fiscal year 2013 are anticipated to be approximately $150 million. The Duarte Business will be integrated into Woodward's Aerospace business segment. Woodward believes there will be operating synergies and significant opportunities for both organizations to share technologies and leverage the customer base.
Woodward has committed financing and available cash sufficient to fund the payment of the purchase price and also provide short-term liquidity after closing. Woodward currently has a $400 million revolving credit facility in place, substantially all of which is currently available.
The addition of the Duarte Business is expected to be slightly accretive to Woodward's earnings per share for fiscal year 2013.
Source: Woodward, Inc.
Date: Dec 28, 2012