Boeing in Talks to Buy Aerospace-Parts Maker Woodward - Update
February 08 2018 - 11:13AM
Dow Jones News
By Dana Mattioli, Bradley Hope and Doug Cameron
Boeing Co. is in talks to buy aerospace parts maker Woodward
Inc., according to people familiar with the matter.
The companies have held talks over the past several months,
according to one of the people. Should there be a deal, it would be
substantial. Woodward had a market value of about $4.8 billion on
Thursday morning. Boeing, the world's largest aerospace company by
revenue, was valued at $205 billion following a surge in its stock
since 2016.
There is no guarantee, however, that the two sides will manage
to strike a deal and one doesn't appear to be imminent.
The talks underscore the takeover appetite of Boeing, which also
is trying to buy part or all of Embraer SA, the Brazilian maker of
smaller commercial jetliners and business jets.
A deal with Woodward would further Boeing's effort to in-source
more aircraft parts and cut costs to better compete with rival
Airbus SE in a commercial-jetliner market worth an estimated $140
billion this year.
Boeing is pressing suppliers for better terms and also building
more of its own parts, including cockpit systems and actuators, the
motors that control wing flaps and other systems.
Woodward, based in Fort Collins, Colo., makes both of these
products for commercial and military aircraft, as well as an array
of other items including engine parts, pumps and valves. The
company, which also has an industrial-machinery business focused on
the energy and utility sectors, had sales of $2.1 billion in fiscal
2017.
It isn't clear what Boeing would do with this business, which
had sales of around $750 million last year, if it bought
Woodward.
(END) Dow Jones Newswires
February 08, 2018 10:58 ET (15:58 GMT)
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