Woodward, Inc. Signs Agreement to Acquire Hydraulic Thrust Reverser
Actuation Systems ("TRAS") Business from General Electric
FORT COLLINS, CO -- (Marketwire) -- 12/28/12 -- Woodward, Inc.
(NASDAQ: WWD) today announced that on December 27, 2012, it signed a
purchase agreement with GE Aviation Systems to acquire the assets of
its hydraulic thrust reverser actuation systems business located in
Duarte, California (the "Duarte Business") for $200 million in cash,
and the parties have entered into a preferred supplier agreement for
thrust reverser actuation systems. The transaction is expected to
close later today.
"The acquisition of the Duarte Business by Woodward's Aerospace
segment provides us with expanded motion control technologies and
platforms, more specifically Thrust Reverser Actuation Systems," said
Thomas A. Gendron, Woodward Chairman and Chief Executive Officer.
The Duarte Business, which employs approximately 350 people, serves
customers such as Boeing, GE, Safran and the U.S. government. Its
products are used primarily on commercial aircraft such as the Boeing
737, 747 and 777, and Airbus A320.
The Duarte Business' sales for fiscal year 2013 are anticipated to be
approximately $150 million. The Duarte Business will be integrated
into Woodward's Aerospace business segment. Woodward believes there
will be operating synergies and significant opportunities for both
organizations to share technologies and leverage the customer base.
Woodward has committed financing and available cash sufficient to
fund the payment of the purchase price and also provide short-term
liquidity after closing. Woodward currently has a $400 million
revolving credit facility in place, substantially all of which is
The addition of the Duarte Business is expected to be slightly
accretive to Woodward's earnings per share for fiscal year 2013.
About Woodward, Inc.
Woodward is an independent designer, manufacturer, and service
provider of control solutions for the aerospace and energy markets.
Our aerospace systems and components optimize the performance of
fixed wing and rotorcraft platforms in commercial, business and
military aircraft, ground vehicles and other equipment. Our
energy-related systems and components enhance the perfor
industrial gas and steam turbines, reciprocating engines,
compressors, wind turbines, electrical grids and other energy-related
industrial equipment. The company's innovative fluid energy,
combustion control, electrical energy, and motion control systems
help customers offer cleaner, more reliable and more efficient
equipment. Our customers include leading original equipment
manufacturers and end users of their products. Woodward is
headquartered in Fort Collins, Colorado, USA. Visit our website at
Information in this press release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995 that involve risks and uncertainties, including but not limited
to statements regarding the combined company's plans, objectives,
expectations and intentions, the expected impact of the acquisition
on the future earnings of Woodward, anticipated benefits of the
acquisition of Duarte and expected business opportunities that may be
available to Woodward, the closing date of the acquisition and the
payments to be made by Woodward on that date, the manner in which
Woodward intends to finance the acquisition and short-term liquidity
after the closing, and the availability of sufficient liquidity to
satisfy these funding requirements. Readers are cautioned that these
forward-looking statements are only predictions and are subject to
risks, uncertainties, and assumptions that are difficult to predict.
Factors that could cause actual results and the timing of certain
events to differ materially from the forward-looking statements
include, but are not limited to, Woodward's inability to obtain
financing for the acquisition on commercially acceptable terms or at
all, the inability of the parties to consummate the acquisition, the
failure of Woodward to successfully integrate the Duarte Business or
realize synergies, the inability to achieve the anticipated sales for
2013, and other risk factors described in Woodward's Annual Report on
Form 10-K for the year ended September 30, 2012.
Director, Investor Relations and Treasury
1000 East Drake Road
Fort Collins, Colorado 80525, USA
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