Goodrich Corporation, a US based Fortune 500 company and aerospace systems supplier, announced on Friday that it had acquired Crompton Technology Group Ltd (CTG), a UK based maker of carbon fibre composite products for the aerospace, defence and homeland security markets.
Goodrich expects this acquisition to allow it expand its markets and composite capabilities. Actuation and Landing Systems segment’s President for Goodrich, Jack Carmola, said CTG’s innovative composite design, engineering and manufacturing experience has positioned it for vital future growth as aircraft, currently in development, transition into production. This acquisition, according to Carmola, will enable Goodrich benefit from the expected growth and expand its composite capabilities into a wider range of Goodrich systems.
The company intends to leverage CTG’s proprietary knowledge on a variety of Goodrich products to benefit commercial and military customers globally. CTG is a privately held company and employs around 150 people at its Banbury facility in the UK. The company’s aerospace products consists of transmission shafts for flight control and power drive systems and specialized pipes that are used in fuel systems. It has also supplied its composite capabilities to other products that include flywheels and accumulators in the clean energy and advanced vehicle markets. In this acquisition, however, CTG becomes part of Goodrich’s Actuation Systems Business, even though the terms of the agreement are yet to be disclosed. Goodrich had revenues of US$6.7 billion last year and employs about 24,000 workers worldwide.
Additionally, the acquisition is expected to give Goodrich expanded carbon fibre composite capabilities. With one of the most strategically diversified portfolios of products in the industry, Goodrich serves a global customer base with significant worldwide manufacturing and service facilities. Goodrich’s share price was up 3.2% on Friday, continuing a mild three-day rally for the stock, which is down 0.6% for the year-to-date. This new acquisition investment acquisition was closed on Wednesday even though the company would not disclose the terms.
Goodrich is fast growing global aerospace player and with the broadening of its composite capabilities, the company is expected to reach more and diverse markets given its diverse manufacturing capabilities. In 2010 first quarter, Goodrich maintained its fiscal-year 2010 total sales expectation of $7.1 billion, which reflects a 6% growth from 2009 levels. Earnings per share are expected to range between $4.15 and $4.40. Cash and cash equivalents as of Mar 31, 2010, were $778.4 million. Goodrich continues to invest to further improve its prospects, and the capital expenditure for 2010 is expected to be in the range of $250 million to $275 million.
June 14, 2010.