Goodrich to acquire Microtecnica for US$462 million
Aerospace component supplier Goodrich Corp.(NYSE:GR) said Friday that it has agreed to pay 330 million euros (US$462 million) in cash to acquire Microtecnica.
Microtecnica, owned by European private equity firm Stirling Square Capital Partners, provides flight control actuation systems. It employs 700 people in its facilities in Italy and the U.K.
The purchase price is 11.5 times for Microtecnica's expected 2011 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), Goodrich said.
"This acquisition supports our business model and fits with our strategy by increasing Goodrich's exposure to three growth markets; commercial and military helicopters, commercial regional, business and general aviation aircraft and missile actuation," said Goodrich's CEO Marshall Larsen.
According to Goodrich, Microtecnica derives a quarter of its sales from the commercial and military helicopter markets. Microtecnica's major customers include AgustaWestland, Alenia, Hamilton Sundstrand, Avio, Bombardier and Eurocopter.
After the deal closes, Microtecnica will become part of Goodrich's Actuation and Landing Systems segment.
Goodrich expects the acquisition begin to add to its earnings this year. Goodrich said Microtecnica's 2011 sales are expected to be about $220 million, and are expected to grow significantly over the next several years.
The deal, subject to regulatory approvals, is expected to close during the second quarter.
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