Leading Supplier of Mission-Critical, High-Speed Rotating Equipment
Solutions to the U.S. Navy
DAVIDSON, N.C.--(BUSINESS WIRE)--
Curtiss-Wright Corporation (NYSE: CW) today announced that it has
completed the acquisition of the Dresser-Rand Government Business
(Dresser-Rand), a business unit of Siemens Government Technologies which
is a wholly-owned U.S. subsidiary of Siemens AG in Germany, for $212.5
million in cash. Dresser-Rand is a leading designer and manufacturer of
mission-critical, high-speed rotating equipment solutions, including
reciprocating compressors, steam turbines and steam system valves,
supporting most major U.S. Navy shipbuilding programs. In addition,
Dresser-Rand is the sole supplier of steam turbines and main engine
guard valves on all aircraft carrier programs.
The acquisition significantly increases Curtiss-Wright’s footprint on
U.S. Navy Nuclear vessels, expands our existing U.S. Navy aftermarket
business and provides an opportunity to leverage Dresser-Rand’s
prominent presence at U.S. Navy shipyards. Through its three service
centers, it is a leading provider of ship repair and maintenance for the
U.S. Navy’s Atlantic and Pacific fleets.
The business will operate within Curtiss-Wright's Power segment and its
sales are principally to the naval defense market, with additional sales
to the power generation market. The acquisition supports our long-term
financial objectives for increased sales growth, margin expansion and
strong free cash flow generation. Excluding the effects of purchase
accounting, it is expected to be accretive to Curtiss-Wright's 2018
earnings per share and produce a free cash flow conversion in excess of
100%.
Dresser-Rand equipment is used on hundreds of U.S. Navy ships to provide
power and compression for propulsion, pump drives, ship service air,
oxygen/nitrogen (O2N2) feed air, generator drives, and deballasting. The
service centers primarily focus on overhauls of Dresser-Rand legacy
equipment, emergent U.S. Navy shipyard repair needs and global service
work pursuant to several key OEM service agreements. Dresser also
produces the Terry©-branded steam turbine feedwater pumps for the
commercial nuclear power market. The Dresser-Rand government business
employs approximately 150 people.
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE:CW) is a global innovative company that
delivers highly engineered, critical function products and services to
the commercial, industrial, defense and energy markets. Building on the
heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a
long tradition of providing reliable solutions through trusted customer
relationships. The company employs approximately 8,600 people worldwide.
For more information, visit www.curtisswright.com.
This press release contains forward-looking statements made pursuant
to the Safe Harbor provisions of the Private Securities Litigation
Reform Act of 1995 that are based on management's beliefs and
assumptions. Such statements, including statements relating to
Curtiss-Wright Corporation's expectations for the future opportunities
associated with the acquisition, the success of transferring
Dresser-Rand’s technology throughout our existing world-wide network,
and the success of the Company integrating Dresser-Rand into its Power
segment are not considered historical facts and are considered
forward-looking statements under the federal securities laws. Such
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
those expressed or implied. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the
date hereof. Such risks and uncertainties include, but are not limited
to: a reduction in anticipated orders; an economic downturn; changes in
competitive marketplace and/or customer requirements; a change in US
government spending; an inability to perform customer contracts at
anticipated cost levels; and other factors that generally affect the
business of aerospace, defense contracting, marine, electronics and
industrial companies. Please refer to the Company's current SEC filings
under the Securities Exchange Act of 1934, as amended, for further
information.
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Source: Curtiss-Wright Corporation