10/25/2010 12:33:00 AM
NEWS BRIEFS
B/E Aerospace Buying Satair’s European OEM Fastener Business
B/E Aerospace agreed to acquire Denmark-based Satair’s aerospace OEM fastener distribution business for $162 million in cash.
“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,” stated B/E CEO Amin Khoury.
The purchase price of approximately $162 million 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 sale includes the current activities of Satair’s OEM segment, which supplies rivets and bolts, as well as the group’s sales of hardware and lamps from its Aftermarket segment. Also included in the acquisition is Satair’s manufacturing facility in the UK that specializes in the production of customer designed hardware and standard fasteners.
The transaction is expected to close in the fourth quarter of 2010, possibly as soon as October 27.
The divestment represents Satair’s exit from the market for fasteners and related components used in aircraft production. Satair’s OEM business has been hurt by recent declining revenue and profit combined with a consolidation in the market.
“It has been increasingly difficult in recent years for Satair to run a competitive and profitable OEM business with the present scale,” stated Satair CEO John Stær.
Staer said the transformed business structure would allow his company to focus on expanding its aftermarket activities, which represent greater long-term strategic opportunities.
Founded in 1957, Copenhagen-based Satair supplied more than 50,000 aircraft parts and service solutions for both aircraft maintenance and production. It’s products were produced by more than 840 suppliers.
In September B/E Aerospace commenced a $650 million public offering of its senior notes. The Wellington, FL-based company intends to use the proceeds to “fund acquisitions of businesses operating within, or complementary to” its fastener distribution segment, Consumables Management, as its commercial aircraft segment.
In 2008 B/E Aerospace bought Honeywell’s aerospace fastener distribution business, Honeywell Consumable Solutions, for $1.06 billion, transforming B/E Aerospace into one of the largest distributors of aerospace fasteners in the world. ©2010 GlobalFastenerNews.com
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