Aircraft component manufacturer Rockwell Collins announced its plan to acquire airplane interior maker B/E Aerospace for a staggering $6.4 billion on Sunday October 23.
The deal, which should finalize in the spring of 2017, will yield B/E shareholders $34.10 per share in cash and $27.90 worth of Rockwell Collins common stock. Rockwell will also take on the $1.9 billion in debt left behind by B/E Aerospace. The acquisition is a synergy of Cedar Rapids-based Rockwell Collins’ avionics expertise and Wellington, Florida’s B/E Aerospace’s cabin interior products. The merge expects to expand the range of products that Rockwell Collins provides to major commercial and business aircraft and also increase in customer base globally.
The buyout will have a cost savings of about $160 million and will cause a double-digit rise to earnings per-share in the first full year. B/E Aerospace CEO Werner Lieberherr is the newly-appointed executive vice-president and chief operating officer for the Rockwell Collins’ aircraft interior systems segment.
At the Arenson Law Group, PC, we handle business and corporate law. Contact us at (319) 363-8199 to find out more about your legal options.