Benzinga | Jan 21, 2022 02:02PM EST

Curtiss-Wright To Acquire Safran Aerosystems Arresting Company For $240M

* Curtiss-Wright Corp (NYSE:CW) has agreed to acquire the assets that comprise the Safran Aerosystems Arresting Company (SAA) for $240 million in cash.

* SAA is a designer and manufacturer of aircraft emergency arresting systems with over 5,000 systems worldwide and currently sells to more than 70 countries. It generated sales of ~$70 million in FY21.

* SAA, which employs nearly 140 people, is based in Aston, Pennsylvania, and also has operations in Merpins, France.

* Curtiss-Wright expects the transaction to be accretive to its adjusted EPS in the first full year of ownership, excluding purchase accounting costs, and produce a solid free cash flow conversion rate well over 100%.

* The acquired business will operate within Curtiss-Wright's Naval & Power segment. The acquisition is expected to close in 3Q22.

* "The acquisition of the Safran arresting systems business increases the breadth of our global defense portfolio and firmly establishes Curtiss-Wright as a leading global supplier of fixed-wing aircraft recovery and arresting systems," said CEO Lynn Bamford.

* Curtiss-Wright held cash and equivalents of $234.42 million as of September 30, 2021.

* Price Action: CW shares traded higher by 1.87% at $138.95 on the last check Friday.