Spirit AeroSystems to acquire Asco Industries
Spirit AeroSystems has announced it is to acquire S.R.I.F. N.V., the parent company of Asco Industries for $650 million in cash.
Asco is a supplier of high lift wing structures, mechanical assemblies and functional components to major OEMs and suppliers in the global commercial aerospace and military markets.
Spirit expects to finance the acquisition through new debt.
Asco employs approximately 1,400 people across four manufacturing sites. Commercial aerospace programmes it supplies include Airbus A320, A350 XWB and A380; Boeing 737 and 787; Bombardier C-Series; and Embraer E2. Military programmes include F-35, A400M, and KC-390.
Tom Gentile, Spirit President and CEO, said: "Asco is a compelling fit for Spirit that aligns extremely well with the strategic priorities we have been communicating. Specifically, it expands our Airbus content on A320 and A350 wings, adds new defence content on the F-35 and broadens our commercial capabilities to help grow our fabrication business.
“We are pleased to acquire a business of this scale that has such an outstanding reputation with its customers dating back to 1954 and a strong management team led by CEO Christian Boas, who will remain with the business following the closing."
Asco revenues are anticipated to be approximately $400 million in 2018.
Gentile added: "We expect to realise attractive cost synergies from the acquisition; the expected return on investment exceeds our internal threshold and the post-synergy EBITDA multiple is under 8x. Spirit estimates the acquisition will be accretive to adjusted non-GAAP earnings per share in the first full year after closing.”
Christian Boas, CEO of Asco, commented: "This transaction with Spirit represents an excellent outcome for Asco and as we become part of a larger, global enterprise with greater combined expertise and resources, we will be even better positioned to do that. We are confident this combination will deliver long-term benefits to our customers and we look forward to joining Spirit as we embark on the next chapter in our company's history."
The transaction, which is expected to close in the second half of 2018, is subject to regulatory approvals and customary closing conditions.