Curtiss-Wright (NYSE: CW) has agreed to acquire electronic systems producer 901D Holdings for approximately $132M in cash as part of efforts to expand its work with the U.S. Navy on shipbuilding programs.
Curtiss-Wright said Tuesday it expects the transaction to close in December, subject to regulatory approval and other customary closing conditions, and will operate 901 as part of its defense segment upon the deal™s completion.
“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, said David Adams, chairman and CEO of Curtiss-Wright.
Adams added the transaction will allow the company to offer shipboard platforms on non-nuclear and nuclear powered vessels and benefit from the continued expansion of the country™s naval fleet.
Curtiss-Wright expects the deal to be accretive to adjusted earnings per share in 2020 and generate a free cash flow conversion rate in excess of 100 percent.
901D has approximately 85 employees and is expected to record approximately $48M in fiscal 2019 sales. The company was founded in 1999 and supplies electronic systems and subsystems and ruggedized shipboard enclosure platforms for use aboard the Navy™s surface ships, submarines and aircraft carriers.
