A Leading Global Supplier of Military Aircraft Arresting Systems
Curtiss-Wright Corporation (NYSE: CW) today announced that it has completed the acquisition of the Safran Aerosystems Arresting Company (SAA) for $240 million in cash. SAA is a designer and manufacturer of mission-critical, fixed-wing aircraft emergency arresting systems with a strong installed base of more than 5,000 systems worldwide including sales to more than 70 countries.
The acquisition of the Safran arresting systems business firmly establishes Curtiss-Wright as a leading global supplier of fixed-wing aircraft recovery and arresting systems, and increases the breadth of the Company’s global defense portfolio as approximately 75% of SAA’s sales are generated outside of the U.S. and support many NATO partners. SAA’s safety systems have a strong alignment to and are a logical adjacency with Curtiss-Wright’s existing helicopter landing and recovery systems, and the combination provides an opportunity to leverage our combined, long-standing relationships with leading defense customers supporting critical defense platforms.
The business will operate within Curtiss-Wright's Naval & Power segment. The acquisition supports Curtiss-Wright's financial objectives for long-term profitable growth and strong free cash flow generation. SAA generated sales of approximately $70 million in 2021, and it is expected to be accretive to Curtiss-Wright's adjusted diluted earnings per share in its first full year of ownership and produce a strong free cash flow conversion rate well in excess of 100%. The Company will update its 2022 financial guidance to include SAA’s contribution when it issues its second quarter 2022 results.
Through its predecessor companies, SAA created the first aircraft arresting system in 1960 and today is a world leader in land-based military arresting systems. Its diverse product portfolio includes energy absorbers, retractable hook cable systems, net-stanchion systems and mobile systems to support aircraft carrier and fixed land-based arresting systems. SAA’s aftermarket business, which is supported by the world’s largest installed base of arresting systems, provides cradle-to-grave support from civil engineering at installation, on-site qualification through post-installation maintenance, spares, and overhaul services. SAA employs nearly 140 people and maintains operations in Aston, Pa. and Merpins, France.
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE:CW) is a global integrated business that provides highly engineered products, solutions and services mainly to Aerospace & Defense markets, as well as critical technologies in demanding Commercial Power, Process and Industrial markets. We leverage a workforce of 7,800 highly skilled employees who develop, design and build what we believe are the best engineered solutions to the markets we serve. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing innovative solutions through trusted customer relationships. For more information, visit www.curtisswright.com.
This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 that are based on management's beliefs and assumptions. Such statements, including statements relating to Curtiss-Wright Corporation's expectations for the future opportunities associated with the acquisition, the 2022 financial forecast for Safran arresting systems business, the success of transferring Safran’s technology throughout our existing world-wide network, and the success of the Company integrating the Safran Aerosystems Arresting Company into its Naval & Power segment are not considered historical facts and are considered forward-looking statements under the federal securities laws. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in competitive marketplace and/or customer requirements; a change in US government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, marine, electronics and industrial companies. Please refer to the Company's current SEC filings under the Securities Exchange Act of 1934, as amended, for further information.