Rockwell Collins, Inc announced it has successfully completed the acquisition of B/E Aerospace, a leading manufacturer of aircraft cabin interior products and services with operation in Nogales, Mexico, for US$ 8.6 billion in total consideration, including debt assumed, the figure is higher than the $8.3 billion announced last October.
As result of this operation, Rockwell Collins now has nearly 30,000 employees and pro forma annual revenue in excess of US$ 8 billion based on calendar year 2016 results.
Rockwell Collins owns a state-of-the-art facility in Mexicali, Baja California, which manufactures communications and entertainment systems for commercial airliners and business and regional jets.
The facility runs on more than 100,000 square feet of production and warehouse space and employs around 700 workers.
Rockwell Collins immediately rebranded B/E Aerospace, redirecting the website to the new owners’ website landing page.
Werner Lieberherr, former B/E Aerospace president and chief executive officer, became executive vice president and chief operating officer of Rockwell Collins’ newly created Interior Systems business. He reports to Kelly Ortberg, chairman, president and chief executive officer of Rockwell Collins.
With the acquisition, Rockwell Collins expands its portfolio with a wide range of cabin interior products for commercial aircraft and business jets including seating, food and beverage preparation and storage equipment, lighting and oxygen systems, and modular galley and lavatory systems.
This advances the company’s global growth strategy by expanding its previous focus on cockpit, cabin management, communication and connectivity solutions, and diversifies its product portfolio and customer mix.
The transaction is expected to generate run-rate pre-tax cost synergies of approximately US$ 160 million (US$ 125 million after tax). The company expects to achieve 90% of the cost synergies by the end of its fiscal year 2019. The transaction is expected to be double-digit accretive to GAAP earnings per share in fiscal year 2018.