- Acquisition enhances Goodrich's specialty seating and interiors capabilities for business jet marketCHARLOTTE, N.C., Aug. 3, 2010 — (PRNewswire) — Goodrich Corporation (NYSE: GR) has signed an agreement to acquire the Cabin Management assets of DeCrane Holdings Co., a leading provider of seating, furniture, veneers and cabin management systems for the business jet market. The transaction does not include the aircraft completions business of DeCrane.
The transaction is expected to close in August 2010, subject to customary government approvals. Sales in 2010 for the business are expected to be approximately $170 million, and are expected to grow significantly over the next several years as the business jet market recovers with the broad economy. The purchase price is approximately $280 million, reflecting a multiple of less than eight times 2010 estimated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). The acquisition is expected to be slightly dilutive in the third quarter 2010 and accretive thereafter, including the impact of purchase accounting adjustments. Goodrich's outlook for 2010 sales, earnings and cash flow, released on July 29, 2010, are not expected to change as a result of this transaction.
DeCrane employs approximately 850 people at six facilities located throughout the U.S. Major customers include business jet manufacturers such as Bombardier, Cessna, Dassault, Embraer and Gulfstream. Primary products include aircraft seats, molded composites, custom cabinetry, custom veneers and furniture, cabin management systems and inflight entertainment systems.
Cindy Egnotovich, Segment President, Nacelles and Interior Systems at Goodrich, said, "This acquisition is an opportunity for Goodrich to add a solid business with excellent market positions in business jet interior systems at an advantageous time in the cycle. DeCrane's leading position in the business jet market allows us to further support our customers in these important sectors, and to capture significant growth opportunities as the business jet market continues its recovery."
The Cabin Management assets will become part of Goodrich's Interiors business, within its Nacelles and Interior Systems segment.
Goodrich Corporation, a Fortune 500 company, is a global supplier of systems and services to aerospace, defense and homeland security markets. With one of the most strategically diversified portfolios of products in the industry, Goodrich serves a global customer base with significant worldwide manufacturing and service facilities. For more information visit http://www.goodrich.com.
Goodrich Corporation operates through its divisions and as a parent company for its subsidiaries, one or more of which may be referred to as "Goodrich Corporation" in this press release.
Certain statements made in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the company's future plans, objectives, and expected performance, including the reference to the expected impact of the transaction on future earnings. Specifically, statements that are not historical facts, including statements accompanied by words such as "believe," "expect," "anticipate," "intend," "estimate," or "plan," are intended to identify forward-looking statements and convey the uncertainty of future events or outcomes. The company cautions readers that any such forward-looking statements are based on assumptions that the company believes are reasonable, but are subject to a wide range of risks, and actual results may differ materially.
Important factors that could cause actual results to differ include, but are not limited to, the extent to which the business jet market recovers and the demand for new business jets and retrofits over the next few years. Further information regarding the factors that could cause actual results to differ materially from projected results can be found in the company's filings with the Securities and Exchange Commission, including in the company's Annual Report on Form 10-K for the year ended December 31, 2009 and the company's quarterly report on Form 10-Q for the quarter ended June 30, 2010.
The company cautions you not to place undue reliance on the forward- looking statements contained in this release, which speak only as of the date on which such statements were made. The company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date on which such statements were made or to reflect the occurrence of unanticipated events.
SOURCE Goodrich Corporation; GR - Nacelles and Interior Systems
GR - Nacelles and Interior Systems
DeCrane Holdings Co.
Media: Laurie Tardif
Phone: +1-704-264-7338, Lisa Bottle
Phone: +1-704-423-7060, Investors: Paul Gifford, +1-704-423-5517, all of Goodrich Corporation