B/E Aerospace Inc. has agreements in place to acquire companies with similar capabilities to its own in the production of aircraft interior parts and structures, EMTEQ Inc. and F+E Fischer + Entwicklungen GmbH & Co. KG (Fischer), for a total price of approximately $470 million.
Commercial aircraft manufacturers are posting records for the numbers of new orders, redesigned aircraft interiors are among the many selling points for new aircraft designs like the Airbus A320 and Boeing 737 MAX.
However, soon after the announcement of those purchases, B/E Aerospace postponed its annual meeting in order to allow directors and management to evaluate the company’s strategic alternatives. Early in May B/E Aerospace announced it is “exploring strategic alternatives,” which may include spin-off or sale of selected businesses, a merger, or other transactions involving the company or its businesses.
A new annual meeting date has not been announced.
B/E Aerospace manufactures civilian and business aircraft interior products, such as seating, lighting systems, oxygen systems, food and beverage prep and storage equipment, galley systems, and modular lavatory systems.
It’s also a manufacturer of aerospace fasteners, and supplies consumable products and logistics services to aircraft OEMs.
Of the two companies B/E Aerospace intends to buy, EMTEQ produces aircraft interior and exterior lighting systems, and aircraft cabin management and power systems; and Fischer manufactures seating for civilian helicopters.
“Demand for comprehensive and integrated solutions for power management, lighting and connectivity within the aircraft cabin is growing, and the acquisition of EMTEQ will enable us to offer more comprehensive solutions,” according to Amin J. Khoury, B/E Aerospace chairman and CEO.
He continued: “The combination of our lighting and power management systems business with EMTEQ’s highly complementary lighting, cabin management and power systems businesses, as well as their electrical and connectivity expertise, will allow us to expand our product and service offerings in the commercial airliner and business jet markets.”
The EMTEQ transaction is expected to close this month.
Khoury said acquiring the Fischer organization would bring important “intellectual property” to B/E Aerospace, including a patent-protected seat security system that has minimal space requirements, and is light and flexible. “We expect to realize substantial engineering, manufacturing and marketing synergies from the transaction,” he said.
The Fischer transaction is expected to close during the third quarter of 2014, subject to regulatory approvals.