In a strategic move that adds to
its position in safety and space-flight systems, The BFGoodrich Company
( has signed a definitive agreement with Autoliv Inc.
to acquire its OEA aerospace unit.
OEA supplies pyrotechnic devices for
space, missile, and aircraft systems. The companies expect to complete the
cash transaction by year-end or early 2001, pending completion of government
reviews.
The purchase price was not disclosed.
The addition of OEA’s major product lines in cartridge and propellant
activated devices will expand BFGoodrich’s current product offerings, improve
product performance, and facilitate growth into complete cockpit escape
systems and space-related applications.
The company anticipates that OEA will
be integrated quickly and that the transaction will be accretive in the first
year.
Current OEA annual revenues are approximately $35 million.
In commenting on the transaction, Jack Carmola, President of Engine and
Safety Systems at BFGoodrich Aerospace, said,
“This acquisition will broaden
our product and technology portfolio, and when added to our existing products,
position BFGoodrich as a market leader in energetic and pyrotechnic
materials.”
Mr. Carmola added, “OEA is another example of our strategy of
building substantial and profitable businesses through small-to-medium
complementary acquisitions enhanced by internal capabilities.”
Earlier this
month, BFGoodrich announced a definitive agreement to acquire Raytheon Optical
Systems to leverage its leadership position in supplying attitude
determination and control systems for space markets.
BFGoodrich’s growth in safety systems began two years ago when it acquired
the Universal Propulsion Company (UPCO), a manufacturer of energetic materials
and pyrotechnic devices with applications in ejection seats and inflatable
escape slides.
The company also acquired the ACES II ejection seat business
from The Boeing Company.
In addition, with the acquisition of IBP Aerospace
Group, Inc., BFGoodrich obtained the rights to further develop and market an
advanced Russian ejection seat technology, the K-36/3.5A, for U.S.-built
aircraft.
BFGoodrich has also extended its capabilities into passenger
restraint systems for aircraft with its Inflatabelt(TM) restraint systems,
which feature an inflatable device within a harness that is triggered in an
accident to provide passenger protection.
The BFGoodrich Company has its headquarters in Charlotte, North
Carolina and employs 27,000 people worldwide.
BFGoodrich’s major business
segments currently include Aerospace, Performance Materials and Engineered
Industrial Products.
Its Aerospace Segment, which accounts for $3.6 billion
of the company’s $5.5 billion in annual sales, is one of the world’s leading
suppliers of components, systems, and services to the aerospace industry.
The
company was recently included as number six in Fortune magazine’s top 10
ranking of the most admired companies in the aerospace industry.
In April
2000, the company announced plans to divest the Performance Materials Segment.
For more information, please visit our website at www.bfgoodrich.com.
Autoliv Inc. develops and manufactures automotive safety systems for all
major automotive manufacturers in the world.
Together with its joint ventures
Autoliv has close to 80 facilities with almost 30,000 employees in more than
30 vehicle-producing countries.
In addition, the company has eight technical
centers around the world, including 19 test tracks, more than any other
automotive safety supplier.
Sales in 1999 amounted to US $3.8 billion and net
income US $200 million.
The company’s shares are listed on the New York Stock
Exchange and its Swedish Depositary Receipts on the OM Stockholm
Stock Exchange.
