Leading Supplier of Mission-Critical, High-Speed Rotating Equipment
Solutions to the U.S. Navy
CHARLOTTE, N.C.--(BUSINESS WIRE)--
Curtiss-Wright Corporation (NYSE:CW) today announced that it has entered
into an agreement to acquire the assets that comprise 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. The acquired business
will operate within Curtiss-Wright's Power segment, and is expected to
be accretive to 2018 earnings per share and produce a free cash flow
conversion in excess of 100%, excluding the effects of purchase
accounting.
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
Nimitz-class and Ford-class aircraft carriers, Virginia-class and
Columbia-class submarines, and most major U.S. Navy shipbuilding
programs. Dresser-Rand is the sole supplier of steam turbines and main
engine guard valves on all aircraft carrier programs. Through its three
service centers, it is also a leading provider of ship repair and
maintenance for the U.S. Navy’s Atlantic and Pacific fleets.
"The acquisition of Dresser-Rand’s government business portfolio
significantly expands our shipset content and increases our footprint on
new U.S. Navy Nuclear vessels, establishes a prominent Curtiss-Wright
presence at U.S. Navy shipyards, and provides an opportunity to grow our
existing U.S. Navy aftermarket business,” said David C. Adams, Chairman
and CEO of Curtiss-Wright Corporation. “The combination of our
long-standing relationships with similar customers, and proven track
records supporting critical U.S. naval defense platforms, ensures that
we are well-positioned to benefit from the continued expansion of our
U.S. naval fleet. Further, this transaction exemplifies the ideal
strategic and financial fit for Curtiss-Wright as it supports our
long-term financial objectives for increased sales growth, margin
expansion and strong free cash flow generation.”
For over 60 years, Curtiss-Wright has ensured safe, reliable operations
by supplying innovative, high-performance products for every nuclear
submarine and aircraft carrier commissioned by the U.S. Navy. Today, we
are the preferred supplier of pumps and valves used in the nuclear
propulsion system, which is the heart of the most critical function of
these vessels, while Dresser-Rand is one of the leading providers of
main steam propulsion turbines and valves.
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, which employs approximately 150
people, is expected to generate sales of approximately $95 million in
fiscal 2018, principally to the naval defense market, with additional
sales to the power generation market. The acquisition is expected to
close in April 2018, subject to the receipt of regulatory approval and
other closing conditions.
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