B/E Aerospace Announces the Acquisition of New York Fasteners Corp., Strengthens Presence in Military/Defense Market Sector
August 14 2006 - 2:00AM
Business Wire
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 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. Shearman & Sterling LLP is outside legal
counsel to B/E and Houlihan Lokey Howard & Zukin's
Aerospace*Defense*Government (ADG) Group acted as exclusive
financial advisor to NYF. This news release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Such forward-looking statements involve risks and
uncertainties. B/E's actual experience may differ materially from
that anticipated in such statements. Factors that might cause such
a difference include those discussed in B/E's filings with the
Securities and Exchange Commission, including but not limited to
its most recent proxy statement, Form 10-K and Form 10-Q. For more
information, see the section entitled "Forward-Looking Statements"
contained in B/E's Form 10-K and in other filings. The
forward-looking statements included in this news release are made
only as of the date of this news release and, except as required by
federal securities laws, we do not intend to publicly update or
revise any forward-looking statements to reflect subsequent events
or circumstances. About B/E Aerospace, Inc. B/E Aerospace, Inc. is
the world's leading manufacturer of aircraft cabin interior
products, and a leading aftermarket distributor of aerospace
fasteners. B/E designs, develops and manufactures a broad range of
products for both commercial aircraft and business jets. B/E
manufactured products include aircraft cabin seating, lighting,
oxygen, and food and beverage preparation and storage equipment.
The company also provides cabin interior design, reconfiguration
and passenger-to-freighter conversion services. Products for the
existing aircraft fleet - the aftermarket - generate about 60
percent of sales. B/E sells and supports its products through its
own global direct sales and product support organization. For more
information, visit B/E's website at http://www.beaerospace.com.
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