B/E Aerospace to Acquire Satair’s Aerospace Fastener Distribution Business in $162 Million Transaction
October 25 2010 - 2:00AM
Business Wire
B/E Aerospace (Nasdaq:BEAV), the world’s leading manufacturer of
aircraft cabin interior products and the world’s leading
distributor of aerospace fasteners and consumables, today announced
that it has signed a definitive agreement with Satair A/S to
acquire Satair’s aerospace fastener distribution business, a market
leader in the distribution of consumables to European and Asia
Pacific aerospace manufacturers and their suppliers. The
acquisition complements and expands B/E Aerospace’s current broad
consumables product offerings to include metric fasteners, adhesive
fasteners, latches, cables, struts, tooling and lighting
products.
“By combining Satair’s fastener distribution business with our
existing European distribution and supply chain management
operations, we will create a more robust and evenly balanced
footprint in both Europe and Asia. Satair’s business is highly
complementary to ours and we believe that both the customer and
supply base will enthusiastically support the joining of two
strongly customer focused suppliers and the opportunity to one-stop
shop with a company better able to support their requirements
through a substantially broader product and services offering,
enhanced global footprint and a history of outstanding customer
service,” said Amin J. Khoury, Chairman and Chief Executive Officer
of B/E Aerospace.
Mr. Khoury concluded, “The Satair aerospace fastener
distribution business acquisition substantially expands the B/E
Aerospace customer base in the European and Asia Pacific regions
and also expands our product offerings. This business has an
excellent OEM-oriented customer base and is highly complementary to
our consumables management segment.”
The transaction is expected to close in the fourth quarter of
2010. The purchase price of approximately $162 million in cash
represents a multiple of approximately 1.5 times expected 2010
revenues and approximately 10 times estimated 2010 earnings before
interest, taxes, depreciation and amortization. The acquisition is
expected to be neutral to B/E Aerospace 2011 net earnings, and
accretive to net earnings thereafter. Through expected efficiency
improvement initiatives the company expects to be able to deliver
margins in this business approximately equal to the margins which
the company currently generates in its consumables management
segment; much as the company has done subsequent to both the New
York Fasteners and Honeywell HCS acquisitions.
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 Aerospace’s actual
experience and results may differ materially from the experience
and results anticipated in such statements. Factors that might
cause such a difference include those related to the completion of
pending acquisitions, and the expected benefits from any pending,
future or completed acquisitions, changes in market and industry
conditions and those discussed in B/E Aerospace’s filings with the
Securities and Exchange Commission, which include its Proxy
Statement, Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K. For more information, see the
section entitled “Forward-Looking Statements” contained in B/E
Aerospace’s Annual Report on 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
B/E Aerospace is the world’s leading manufacturer of aircraft
cabin interior products and the world’s leading distributor of
aerospace fasteners and consumables. B/E Aerospace designs,
develops and manufactures a broad range of products for both
commercial aircraft and business jets. B/E Aerospace manufactured
products include aircraft cabin seating, lighting, oxygen systems,
food and beverage preparation / storage equipment, and water and
vacuum waste systems. The company also provides cabin interior
design, reconfiguration and passenger-to-freighter conversion
services. Products for the existing aircraft fleet - the
aftermarket - generate approximately 50 percent of sales. B/E
Aerospace sells and supports its products through its own global
direct sales and product support organization. For more
information, visit the B/E Aerospace website at
www.beaerospace.com.
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