Rockwell Collins to Purchase ARINC Inc. for $1.39 Bn
- Builds on Rockwell CollinsaEUR(tm) information-enabled avionics and cabin systems and ARINCaEUR(tm)s high-integrity aviation networks to provide customers a broader range of solutions
- Accelerates Rockwell CollinsaEUR(tm) growth in flight services by bringing together best-in-class international and regional trip support solutions
- Strengthens Rockwell CollinsaEUR(tm) overall balance and diversity
Rockwell Collins, Inc. (NYSE: COL) today announced it has reached a definitive agreement to acquire ARINC Incorporated, a portfolio company of The Carlyle Group, and a leader in communications and information processing solutions for the commercial aviation industry, for $1.39 billion.The transaction will bring together two leading players in the growing field of aviation information management, combining ARINC’s trusted networks and services with the industry leading avionics and cabin technologies developed by Rockwell Collins.
"Strategically, this acquisition is a natural fit for Rockwell Collins," said Kelly Ortberg, Rockwell Collins Chief Executive Officer and President. "It accelerates our strategy to develop comprehensive information management solutions by building on our existing information-enabled products and systems and ARINC's ground–based networks and services to further expand our opportunities beyond the aircraft."
Air Traffic Control Equipment Market 2013 - 2019
ARINC broadly touches the entire aviation eco-system, including pilots, operators, maintenance, passengers, controllers, regulators, security, and airport operations. In addition, ARINC provides communications and information processing for the rail, industrial security and public safety segments. Their 2013 revenues are expected to be in excess of $600 million. When completed, the acquisition will shift the balance of Rockwell Collins’ business to approximately 54 percent commercial and 46 percent government.
“ARINC’s strong customer base, high customer retention rates and subscription business model will help the company achieve accelerated growth and benefit from greater earnings consistency throughout the commercial aviation business cycle,” added Ortberg.
"We’re excited to be joining a company who shares our vision and focus on providing trusted solutions for our customers," said ARINC Chairman and Chief Executive Officer John Belcher. "Rockwell Collins’ expertise in managing information on-board the aircraft, coupled with our innovative and reliable air to ground communications services, will be instrumental in providing new integrated information management solutions for our customers."
The transaction is expected to close upon receipt of regulatory approvals and other customary conditions. It is expected to be EPS accretive once certain transaction and integration costs have been incurred.
Ortberg will discuss the transaction in a live webcast Monday at 9:30 a.m. EDT. A link to the webcast and an investor presentation can be found on the Investor Relations portion of Rockwell Collins’ website at www.rockwellcollins.com.
Citi was the financial advisor to the company.
Source : Rockwell Collins
Dec 2 - 3, 2014 - Rome, Italy