Curtiss-Wright to Acquire Pacific Star Communications, Inc.

Leading Defense Industry Supplier of Advanced Tactical Communications Solutions for Battlefield Network Management

DAVIDSON, N.C.--(BUSINESS WIRE)--Curtiss-Wright Corporation (NYSE: CW) today announced that it has entered into an agreement to acquire the stock of Pacific Star Communications, Inc. (PacStar®) for $400 million in cash. PacStar, a private company, is a leading provider of tactical communications solutions for battlefield network management, including commercial off-the-shelf (COTS)-based rugged, small form factor communications systems, and its proprietary “IQ-Core® Software” integrated network communications management software.

The acquired business will operate within Curtiss-Wright's Defense segment and is expected to generate sales in excess of $120 million in 2020. PacStar 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 acquisition of PacStar establishes Curtiss-Wright as a critical supplier of advanced tactical and enterprise network communications solutions supporting a broad spectrum of high-priority U.S. military force modernization programs,” said David C. Adams, Chairman and CEO of Curtiss-Wright Corporation. “The combination of Curtiss-Wright’s mission-critical mobile and secure COTS-based processing, data management and communications technologies with PacStar’s highly complementary hardware and software solutions will enable us to deliver best-in-class platform network integration and tactical data link network management to the warfighter.

“PacStar, which represents the largest transaction in Curtiss-Wright’s recent history, is well-positioned to benefit from the military’s continued investment in robust, secure and integrated battlefield network management and is expected to yield significant opportunities for revenue growth. Further, this acquisition supports Curtiss-Wright’s financial objectives for long-term profitable growth and strong free cash flow generation within our disciplined and balanced capital allocation strategy.”

Founded in 2000, PacStar’s solutions are utilized in mission-critical applications, combining tactical networking equipment and software to enable enhanced battlefield situational awareness down to the individual warfighter. Their patented software and hardware technologies are core components of secure command, control and communications systems, particularly in remote or infrastructure-starved areas. PacStar’s network management software, IQ-Core Software, provides a simpler, faster and more reliable solution for setting up and managing network communications, including secure wireless, satellite communications, and soldier-portable systems. PacStar has secured strong positions on critical U.S. Army programs, including Warfighter Information Network-Tactical (WIN-T) (now PM TN) and Transportable Tactical Command Communications (T2C2), and the U.S. Marine Corps’ Networking-on-the-Move (NOTM) program.

PacStar, which employs nearly 145 people (30+ engineers) and is based in Portland, Oregon, primarily generates sales from the ground defense market. The acquisition is expected to close in the fourth quarter of 2020, subject to regulatory approval and other closing conditions.

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 8,900 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 the future opportunities associated with the acquisition, the 2020 financial forecast for PacStar, the success of transferring PacStar’s technology throughout our existing world-wide network, and the success of Curtiss-Wright integrating PacStar 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.