B/E Aerospace to buy UFC Aerospace

Victoria
By Victoria January 10, 2012 12:58

B/E Aerospace to buy UFC Aerospace

Aircraft cabin interior manufacturer B/E Aerospace has signed a definitive agreement to acquire supply chain management company UFC Aerospace Corp. (UFC) for $400 million in cash.

Amin J. Khoury, Chairman and Chief Executive Officer of B/E Aerospace said: “The acquisition purchase price is approximately $400 million in cash, representing a multiple of approximately 9.5 times adjusted 2011 EBITDA (earnings before interest, taxes, depreciation and amortization), plus the estimated net present value of the tax benefits from tax deductible goodwill. The acquisition is expected to close before the end of the first quarter.”

He adds: “Our future revenue growth will be fueled by key positions on critical customer platforms, our ability to continue to respond to customer demand for same day service, and our ability to respond to aerospace customer trends toward outsourcing more and more key elements of the supply chain through complex logistic solutions. B/E Aerospace is uniquely positioned for all of these.”

As a result of the expected accretive nature of this transaction, B/E Aerospace announced that it is increasing its 2012 earnings per share guidance by approximately $0.10 per diluted share to approximately $2.75 per diluted share.

Citigroup Global Markets acted as the financial adviser to B/E Aerospace and Shearman & Sterling acted as legal counsel to B/E Aerospace in connection with the transaction. Wells Fargo Securities acted as financial adviser and Schulz & Associates acted as legal counsel to UFC in connection with the transaction.

Victoria
By Victoria January 10, 2012 12:58
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