Harris Corporation (NYSE:HRS) and Albany International Corp. (NYSE:AIN) today announced a definitive agreement under which Albany International will acquire Harris’ Aerostructures business for an enterprise value of $210 million, including $187 million in cash at closing and the assumption of a $23 million capitalized lease. The transaction is subject to customary closing conditions and regulatory review, and is expected to close by the end of the first calendar quarter or early second calendar quarter of 2016.
“The sale of Aerostructures reflects our strategy to optimize our business portfolio,” said William M. Brown, chairman, president and chief executive officer. “Proceeds from the transaction will be used to pay down debt.”
The Aerostructures business is included in the company’s Electronic Systems segment and was acquired as part of Harris’ acquisition of Exelis in May 2015. The business had calendar 2015 revenue of $77 million and operates in two facilities in Salt Lake City, Utah.
Harris Aerostructures designs, manufactures and assembles advanced composite structures found throughout commercial and military aircraft – from wings and tanks to rotor blades and the airframes that form the shell of the aircraft. These composites combine high-strength fibers that deliver many of the same benefits of metal – strength, stiffness, stability and the ability to perform in extreme temperatures – with the added benefit of less weight and more corrosion resistance.
Source: Harris Corporation (NYSE: HRS)
Date: Feb 29, 2016