B/E Aerospace Announces the Acquisition of New York FastenersStrengthens Presence in Military/Defense Market Sector
( WELLINGTON, Fla., August 14, 2006 ) - B/E Aerospace, Inc. (Nasdaq:BEAV), the world's leading manufacturer of aircraft cabin interior products and a leading aftermarket distributor of aerospace fasteners, today announced that it has agreed to acquire New York Fasteners Corp. (NYF), a privately-held company, for approximately $68 million in cash. NYF, founded in 1956, had revenues of approximately $56 million for its most recent fiscal year ended June 30, 2006 and is a distributor of a wide variety of aerospace fasteners and hardware primarily to the military sector.
The Global Man-Portable Military Electronics Market 2013-2023
The acquisition, which will be funded with borrowings under B/E's senior secured credit facility, is subject to customary closing conditions and is expected to be completed in August 2006.
B/E plans to merge NYF's complementary hardware distribution and vendor-managed inventory business with its own distribution operations based in Miami, Florida. The transaction is expected to be modestly accretive to earnings per share in 2007 and significantly accretive in 2008. The integration of NYF with B/E's distribution segment is expected to create procurement and operational synergies and significantly expand B/E's overall penetration into the military sector. The combination of NYF's vendor-managed inventory and third-party logistics capabilities and strong military and defense customer relationships, coupled with B/E's advanced automated stocking and retrieval systems is expected to allow B/E to offer a significantly wider range of products and services to a larger and broader customer base.
Over 70 percent of NYF's annual revenues are derived from military and defense customers. The acquisition of NYF, when considered together with B/E's recently announced acquisition of aircraft oxygen supplier Draeger Aerospace GmbH (Draeger) and other B/E products, including its position on the Airbus A400M, is expected to bring B/E's total sales to the military and defense market to over $100 million annually and favorably position the company for cross-sell opportunities in this sector.
"The NYF and Draeger acquisitions provide us with access to important customers in the large and growing military market. We intend to build upon these strong new customer relationships and, over time, work with them to develop and supply a broader range of products and solutions from across the company," commented Amin J. Khoury, Chairman and CEO of B/E Aerospace, Inc.
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Source : B/E Aerospace