DAVIDSON, N.C.--(BUSINESS WIRE)--Curtiss-Wright Corporation (NYSE: CW) today announced that it has completed the acquisition of 901D Holdings, LLC (901D) for $132 million in cash. 901D is a leading designer and manufacturer of mission-critical integrated electronic systems, subsystems and ruggedized shipboard enclosure solutions supporting every major U.S. Navy shipbuilding program.
The acquisition expands the breadth of our instrumentation and controls systems technologies and increases Curtiss-Wright’s footprint on critical U.S. Navy shipbuilding programs. In addition, the combination of 901D’s proven track record and Curtiss-Wright’s state-of-the-art electronic systems and software capabilities will allow us to provide shipboard solutions on both nuclear and non-nuclear powered vessels, and ensures that we are well-positioned to benefit from the continued expansion of the U.S. naval fleet.
The business will operate within Curtiss-Wright's Defense segment. The acquisition supports our long-term financial objectives including increased sales growth, margin expansion and strong free cash flow generation. It is expected to be accretive to Curtiss-Wright's 2020 adjusted diluted earnings per share, excluding first year purchase accounting costs, and produce a free cash flow conversion rate in excess of 100%.
Founded in 1999, 901D’s solutions are utilized in mission-critical applications to protect servers, weapons systems and other hardware aboard all major U.S. Navy aircraft carriers, submarines and surface ships from harsh environments (shock, thermal, electromagnetic). Further, it is a critical supplier of MIL-SPEC ruggedized enclosure solutions from specification through certification and also provides proven design configurations to match customers’ exact form, fit and function requirements. 901D employs approximately 85 people.
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE:CW) is a global innovative company that delivers highly engineered, critical function products and services to the commercial, industrial, defense and energy markets. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing reliable solutions through trusted customer relationships. The company employs approximately 9,000 people worldwide. For more information, visit www.curtisswright.com.
This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 that are based on management's beliefs and assumptions. Such statements, including statements relating to Curtiss-Wright Corporation's expectations for future opportunities associated with the acquisition, the 2020 financial forecast for 901D, and the success of the Company integrating 901D into its Defense segment are not considered historical facts and are considered forward-looking statements under the federal securities laws. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in competitive marketplace and/or customer requirements; a change in US government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, marine, electronics and industrial companies. Please refer to the Company's current SEC filings under the Securities Exchange Act of 1934, as amended, for further information.