Curtiss-Wright [CW] on Wednesday said it has agreed to acquire 901D Holdings
for $132 million in cash, expanding its work with U.S. Navy shipbuilding programs and shipyards and adding new capabilities in shipboard enclosures and full-integrated electronic solutions.
The acquisition is expected to close in December. 901D, which is based in New York, has about 85 employees and expects sales of about $48 million this year.
“The acquisition of 901D increases our footprint on critical U.S. Navy shipbuilding programs, as well as the breadth of our instrumentation and controls systems technologies,” David Adams, chairman and CEO of Curtiss-Wright, said in a statement. “The combination of 901D’s proven track record and Curtiss-Wright’s state-of-the-art electronic systems and software capabilities will allow us to provide shipboard solutions on both nuclear and non-nuclear powered vessels, and ensure that we are well-positioned to benefit from the continuing expansion of our U.S. Naval fleet. Further, this transaction reinforces our long-term financial objectives including increased sales growth, margin expansion and strong free cash flow generation.”
Curtiss-Wright expects the acquisition to be accretive to its adjusted earnings per share in 2020, excluding purchase accounting costs, and generate free cash flow greater than 100 percent of earnings.
Following the acquisition, 901D will become part of Curtiss-Wright’s Defense Solutions division.
With the acquisition, the division “firmly establishes its position as a leading designer and manufacturer of MIL-SPEC Naval Shipboard ruggedized enclosure and electronic subsystems,” Lynn Bamford, senior vide president and general manager for Defense and Power at Curtiss-Wright, said in a statement. “Combined with our current mission-critical maritime solutions, this acquisition further expands our ability to provide shipboard solutions on all U.S. aircraft carriers, submarines, surface combatants, and amphibious ships.”