B/E Aerospace To Buy Two Aerospace Manufacturing Businesses For About $470 Mln

(RTTNews) - B/E Aerospace, Inc. (BEAV), a maker of aircraft cabin interior products, said Monday that it has agreed to acquire two aerospace manufacturing businesses for a total purchase price of about $470 million.

The Wellington, Florida-based company said it will acquire U.S.-based EMTEQ, a privately-held provider of aircraft lighting systems as well as aircraft cabin management and power systems. In addition, the company will acquire Germany-based F+E Fischer + Entwicklungen GmbH & Co. KG, a maker of seating products for civilian helicopters.

B/E Aerospace noted that the EMTEQ and Fischer transactions were the two aerospace acquisition prospects that were referenced by the company in its press release dated April 23, 2014.

At that time, the company said it has signed non-binding letters of intent to acquire two important aerospace manufacturing businesses and also completed one small aerospace bolt-on transaction, all in the business jet segment.

EMTEQ and Fischer had combined revenues of about $150 million for the twelve months ended March 31, 2014.

Amin Khoury, Chairman and Chief Executive Officer of B/E Aerospace said, "Demand for comprehensive and integrated solutions for power management, lighting and connectivity within the aircraft cabin is growing, and the acquisition of EMTEQ will enable us to offer more comprehensive solutions."

Khoury added, "Fischer is the leading global supplier of crashworthy civilian crew and passenger seats to helicopter OEMs. Fischer has significant intellectual property (IP), including a patent protected seat security system which has minimum space requirements and is extremely light and flexible. We expect to realize substantial engineering, manufacturing and marketing synergies from the transaction."

B/E Aerospace said it does not expect the transactions to be accretive to its 2014 earnings per share, but expects it to become accretive in 2015 and "strongly accretive" in 2016. The company will incur transaction expenses of about $10 million as a one-time charge in the second quarter of fiscal 2014.

The company expects the EMTEQ transaction to close later in June 2014 and the Fischer transaction to close around the beginning of the third quarter of 2014, subject to regulatory approvals.

B/E Aerospace said in early May that it is currently engaged in a process to explore and evaluate strategic alternatives involving the company and its respective businesses to enhance shareholder value. The company has retained Citigroup as its financial advisor and Shearman & Sterling LLP as its legal advisor in connection with the process.

BEAV is currently trading at $95.31, down $1.44 1.49 on a volume of 679,665 shares.