Goodrich Corporation signs agreement with SSCP Aero Holdings S.C.A to acquire Microtecnica S.r.l.

Goodrich Corporation has signed an agreement with SSCP Aero Holdings S.C.A., a company backed by the European private equity firm Stirling Square Capital Partners, to acquire Microtecnica S.r.l. Microtecnica is a leading provider of flight control actuation systems for helicopter, regional and business aircraft, missile actuation, and aircraft thermal and environmental control systems.

Total cash consideration for the acquisition is approximately 330 million Euros, reflecting a multiple of approximately 11.5 times 2011 estimated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), said Goodrich.

Marshall Larsen, Goodrich chairman, president and chief executive officer said the acquisition supports Goodrich’s business model and fits with its strategy by increasing the firm's exposure to three growth markets; commercial and military helicopters, commercial regional, business and general aviation aircraft and missile actuation.

According to Larsen, Microtecnica's manufacturing capacity and engineering resources are excellent complements to Goodrich's flight control actuation business. They also provide support to the environmental and thermal controls market as a capable supplier of components and sub-systems, said Larsen.

Alan Bean, chief executive officer of Microtecnica said Microtecnica's expertise in flight controls and environmental and thermal control systems will be an excellent complement to Goodrich's leadership position in aerospace and defense.

Goodrich Corp expects the transaction to close during the second quarter of 2011, subject to customary government approvals. Sales for the full year 2011 for the business are expected to be approximately $220 million, and are expected to grow significantly over the next several years. The acquisition is expected to be slightly accretive to earnings in 2011, including the impact of purchase accounting adjustments, and solidly accretive thereafter.

Microtecnica employs approximately 700 people at facilities located in Turin, Luserna San Giovanni and Brugherio, Italy and Bristol, UK. The company has significant sales to both the commercial aerospace and defense and space markets, with approximately 60 per cent of sales derived from original equipment and 40 per cent from the aftermarket.

With approximately 25 per cent of sales in the commercial and military helicopter markets, this acquisition will add new content and strengthen Goodrich's position in this key high-growth market. Major customers include AgustaWestland, Alenia, Hamilton Sundstrand, Avio, Bombardier and Eurocopter. Microtecnica will become part of Goodrich's Actuation Systems business, within its Actuation and Landing Systems segment.

Goodrich Corporation is a global supplier of systems and services to aerospace, defense and homeland security markets.

1st April 2011

© Copyright 2010-16 Invest in EU All rights reserved.