B/E Aerospace to buy two aircraft parts makers for $470 million
by Boeing from press release
| 2014/06/02 | 253 words
| AVIATION WORLD NEWS | INDUSTRY / TECHNOLOGY
B/E Aerospace Inc, a maker of products for aircraft interiors, said it would buy two companies for about $470 million to boost its offerings to manufacturers of commercial airliners, helicopters and business jets.
The company said on Monday it would acquire Wisconsin-based Emteq Inc, a provider of aircraft lighting systems, and F+E Fischer + Entwicklungen GmbH & Co KG, a German manufacturer of helicopter seats.
B/E Aerospace had mentioned these deals in April, when it reported its first-quarter results.
Analysts said they don't think the deals would complicate the strategic review the company is undergoing.
B/E Aerospace in May made a surprise announcement of reviewing strategic options, including a sale, merger or a spinoff of some businesses.
"We don't think completion of these transactions should have a major impact on where the stock will be over the next 6-12 months given the focus is likely to be on how its exploration of strategic options plays out," RBC Capital Markets analyst Robert Stallard said in a note on Monday.
B/E Aerospace said the two companies had a combined revenue of about $150 million in the 12 months ended March 31 and that the deals would add to its earnings in 2015 and 2016.
The company will take a one-time charge of about $10 million related to the deals in the second quarter ending Aug. 31.
The Emteq deal will close in June, while the Fischer transaction will close in the third quarter, B/E Aerospace said.
The company's shares were down about 1 percent at $95.86 on the Nasdaq on Monday.
The company said on Monday it would acquire Wisconsin-based Emteq Inc, a provider of aircraft lighting systems, and F+E Fischer + Entwicklungen GmbH & Co KG, a German manufacturer of helicopter seats.
B/E Aerospace had mentioned these deals in April, when it reported its first-quarter results.
Analysts said they don't think the deals would complicate the strategic review the company is undergoing.
B/E Aerospace in May made a surprise announcement of reviewing strategic options, including a sale, merger or a spinoff of some businesses.
"We don't think completion of these transactions should have a major impact on where the stock will be over the next 6-12 months given the focus is likely to be on how its exploration of strategic options plays out," RBC Capital Markets analyst Robert Stallard said in a note on Monday.
B/E Aerospace said the two companies had a combined revenue of about $150 million in the 12 months ended March 31 and that the deals would add to its earnings in 2015 and 2016.
The company will take a one-time charge of about $10 million related to the deals in the second quarter ending Aug. 31.
The Emteq deal will close in June, while the Fischer transaction will close in the third quarter, B/E Aerospace said.
The company's shares were down about 1 percent at $95.86 on the Nasdaq on Monday.
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