Rockwell Collins To Buy B/E Aerospace

Rockwell Collins To Buy B/E Aerospace

Rockwell Collins has agreed to acquire aircraft cabin interior manufacturer B/E Aerospace in a USD$8.3 billion deal.

The US avionics company will pay USD$6.4 billion in cash and stock and assume USD$1.9 billion in net debt. The deal is expected to complete in spring 2017.

The combined company will add B/E's cabin interior and galley products to Rockwell’s flight deck avionics and cabin electronics business.

“B/E Aerospace has a leading position in nearly all the segments it serves,” Rockwell’s chief executive Kelly Ortberg said. It “provides a strong flow of aftermarket retrofit opportunities that balances our current cyclical exposure to OEM production rates.”

B/E Aerospace founder and chairman, Amin Khoury, said “We feel confident that this combination delivers significant long-term benefits neither company could realise on its own.”

The purchase is subject to regulatory approval.