BELLEVUE, Wash., March 27, 2006—Esterline Technologies Corporation today announced that it has completed the acquisition of Wallop Defence Systems Ltd. from Cobham plc. for approximately $59 million in cash plus a contingency for future performance.
Robert W. Cremin, Esterline CEO, said, “...Wallop is the leading international producer of military countermeasure flares while Esterline is the leading domestic producer. The transaction brings to our customers the advantages of a global entity sharply focused on world-class research, development, manufacturing, sales and support of countermeasure flares technology.”
Cremin said that pyrotechnic know-how is a core strength that Esterline has been actively developing for many years. He explained that Esterline has been the world’s leading producer of combustible ordnance for tank, artillery and mortar rounds since the early ‘70s. In 2002, Esterline acquired the countermeasure flares and chaff operations of BAE Systems and in late 2005, completed the purchase of Cobham’s smaller U.S. countermeasures operation.
With Wallop, Esterline now employs nearly 8,000 people around the world. Cremin said that UK-based Wallop will continue to run as a stand-alone operation reporting directly to the Esterline Defense Group headquartered in Coachella, California. Wallop is the ninth plant Esterline has acquired in the U.K. in the past six years.
Esterline will conduct a conference call to discuss the transaction on Tuesday,
March 28, 2006, at 1:00 p.m. PST (4 p.m. EST). Listeners may access the conference call live over the Internet at the following locations: www.esterline.com and www.ccbn.com.
Esterline was advised in this transaction by Jefferies Quarterdeck, a division of Jefferies & Company, Inc.; Esterline’s legal advice was provided in the UK by Eversheds LLP
Esterline Corporation is a specialized manufacturing company serving principally aerospace/defense markets. Esterline management views the company's businesses in three segments related to its set of core competencies: Advanced Materials, Avionics & Controls, and Sensors & Systems.
Operations within the Advanced Materials segment focus on technologies including electronic warfare countermeasure products, combustible ordnance and high-temperature resistant materials used for a wide range of military and commercial aerospace purposes. The Avionics & Controls segment focuses on technology interface systems for commercial and military aircraft and similar devices for land- and sea-based military vehicles, secure communications systems, specialized medical equipment, and other high-end industrial applications. The Sensors & Systems segment includes operations that produce high-precision temperature and pressure sensors, electrical power distribution equipment, and other related systems principally for aerospace and defense customers.