B/E Aerospace Announces the Completion of the Acquisition of New York Fasteners Corp.; Strengthens Presence in Military/Defense
September 05 2006 - 8:57AM
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
completed the acquisition of New York Fasteners Corp. (NYF), a
privately-held company, for approximately $66.5 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. 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. 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.
B/E Aerospace, Inc. (NASDAQ:BEAV)
Historical Stock Chart
From May 2024 to Jun 2024
B/E Aerospace, Inc. (NASDAQ:BEAV)
Historical Stock Chart
From Jun 2023 to Jun 2024