Curtiss-Wright Corporation has entered into an agreement to acquire the assets that comprise the Safran Aerosystems Arresting Company (SAA) for $240 million in cash. SAA is a designer and manufacturer of aircraft emergency arresting systems with more than 5,000 systems worldwide and currently sells into more than 70 countries.
SAA generated sales of approximately $70 million in 2021 and is expected to be accretive to Curtiss-Wright’s adjusted diluted earnings per share in its first full year of ownership, excluding first year purchase accounting costs, and produce a strong free cash flow conversion rate well in excess of 100%. The acquired business will operate within Curtiss-Wright’s Naval & Power segment.
“The acquisition of the Safran arresting systems business increases the breadth of our global defense portfolio and firmly establishes Curtiss-Wright as a leading global supplier of fixed-wing aircraft recovery and arresting systems,” said Lynn M. Bamford, President and CEO of Curtiss-Wright Corporation. “SAA’s technologies are a logical extension to our existing helicopter landing and recovery systems. The combination provides an opportunity to leverage our long-standing relationships with leading defense customers supporting critical defense platforms, such as the F-35, and is expected to yield significant opportunities for revenue growth, including increased foreign military sales.”
“Building on our successful acquisition track record, SAA’s critical safety systems have a strong alignment to our strategic priorities as highlighted at our 2021 investor day.”
Through its predecessor companies, SAA created the first aircraft arresting system in 1960. Today, its diverse product portfolio includes energy absorbers, including the BAK-12 multiple disc mechanical brake system, retractable hook cable systems, net-stanchion systems and mobile systems to support aircraft carrier and fixed land-based arresting systems. In addition to being a world leader in land-based military arresting systems, SAA also supplies the mechanical braking module for the Advanced Arresting Gear (AAG) used on the U.S. Navy’s Ford-class aircraft carrier program. SAA’s aftermarket business, which is supported by the world’s largest installed base of arresting systems, provides cradle-to-grave support from civil engineering at installation, on-site qualification through post-installation maintenance, spares, and overhaul services.
SAA, which employs nearly 140 people, is based in Aston, Pa., and maintains operations in Merpins, France. The acquisition is expected to close in the third quarter of 2022, subject to regulatory approval and other closing conditions.