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© rockwell Collins Electronics Production | October 24, 2016

Rockwell Collins to acquire B/E Aerospace for $8.3 billion

Rockwell Collins has entered into a definitive agreement under to acquire B/E Aerospace B/E Aerospace for approximately USD 6.4 billion in cash and stock, plus the assumption of USD 1.9 billion in net debt.
Under the terms of the agreement, each B/E Aerospace shareowner will receive total consideration of USD 62.00 per share, comprised of USD 34.10 per share in cash and USD 27.90 in shares of Rockwell Collins common stock, subject to a 7.5% collar. This represents a premium of 22.5% to the closing price of B/E Aerospace common stock on Friday, October 21, 2016.

The transaction combines Rockwell Collins’ capabilities in flight deck avionics, cabin electronics, mission communications, simulation and training, and information management systems with B/E Aerospace's range of cabin interior products, which include seating, food and beverage preparation and storage equipment, lighting and oxygen systems, and modular galley and lavatory systems for commercial airliners and business jets.

The acquisition increases Rockwell Collins’ scale and diversifies its product portfolio, customer mix and geographic presence. On a pro forma basis, Rockwell Collins would have nearly 30’000 employees, USD 8.1 billion in revenues and USD 1.9 billion in EBITDA for the twelve months ending September 30, 2016.

“This transformational acquisition is consistent with our strategy to accelerate growth and build value through market-leading positions in cockpit and cabin solutions,” said Kelly Ortberg, Chairman, President and Chief Executive Officer of Rockwell Collins. “We see tremendous opportunity to better serve our commercial aviation, business jet and military customers through broader offerings.”

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