Goodrich Corp. [GR] recently said it has agreed to acquire Italy’s Microtecnica from the United Kingdom-based private equity firm SSCP Aero Holdings for $462 million in cash, adding to its portfolio of flight actuation systems and strengthening its position in the helicopter market.
Goodrich said it expects the acquisition to be slightly accretive to earnings this year, including the impact of purchase accounting adjustments, and then solidly accretive thereafter. Microtecnica, which was sold by United Technologies Corp. [UTX] to SSCP in 2008, is expected to have sales of $220 million this year.
“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; and business and general aviation aircraft and missile actuation,” Marshall Larsen, chairman, president and CEO of Goodrich, said in a statement. “Microtecnica’s manufacturing capacity and engineering resources are an excellent complement to Goodrich’s flight control actuation business as well as providing support to the environmental and thermal controls market as a capable supplier of components and sub-systems.”
The deal is expected to close during the second quarter of 2011. Goodrich said the purchase price is 11.5 times estimated 2011 earnings before interest, taxes, depreciation and amortization.
Microtecnica has 700 employees and operates at facilities in Italy and Britain. About 60 percent of its sales are in original equipment and the rest in the aftermarket. About 25 percent of sales are related to commercial and military helicopters with key customers including AgustaWestland, Alenia, UTC’s Hamilton Sundstrand, Avio, Bombardier [BBD] and Eurocopter.
Microtecnica will become part of Goodrich’s Actuation Systems business.