B/E Aerospace Looking To Sell All Or Part of Its Businesses

Consumables Management
In 2008 B/E Aerospace acquired 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. 

As part of the deal, B/E signed a 30-year contract to become Honeywell’s exclusive licensee to sell fasteners, seals and other products, as well as supplying Honeywell’s production facilities.

Consumables Management provides logistics services to OEMs, airlines, repair shops, flight service centers and distributors, as well as distributing aerospace fasteners. 

With a combination of $903.1 million in cash and six million shares of common stock, B/E paid about twice HCS’ $524 million in revenue – reportedly about double the aerospace and defense sector’s price-to-sales ratio of 1.1 to 1.

Consumables Management operates a 62,000 sq ft manufacturing facility in Bridgeport, West Virginia, along with seven distribution centers in the U.S, two in Germany, two in the UK, and one in France. 

Consumables Management segment (CMS) revenue – primarily fasteners – increased 12.2% to $366.6 million in the first quarter of 2014, while operating earnings, adjusted to exclude first quarter acquisition costs, grew 9.6% to $71 million. Operating margin, adjusted to exclude first quarter acquisition costs, was 19.4%.

In 2013, CMS revenue rose 9.3% to $1.28 billion. ©2014 GlobalFastenerNews.com