Rockwell Collins (NYSE: COL). Cedar Rapids, IA, has agreed to acquire B/E Aerospace Inc. (NASDAQ: BEAV), Wellington, FL, for $6.4 billion in cash and stock, plus the assumption of $1.9 billion in net debt.
The acquisition significantly increases Rockwell Collins' scale and diversifies its product portfolio, customer mix and geographic presence.
"This transformational acquisition is consistent with our strategy to accelerate growth and build value through market-leading positions in cockpit and cabin solutions," said Kelly Ortberg, president and CEO of Rockwell Collins. "We see tremendous opportunity to better serve our commercial aviation, business jet and military customers through broader offerings."
B/E Aerospace also reported sales for the third quarter of $732.7 million, a 7.8 percent increase over the same period a year ago. Profit increased 81.8 percent to $83.3 million.
Third-quarter commercial aircraft segment sales were $578.8 million, up 14 percent from the prior year, while business jet segment sales decreased 10.5 percent to $153.9 million.
For the first nine months, sales for B/E were $2.2 billion, up 6.4 percent year-over-year. Profit increased 23.9 percent to $250.7 million.