MELBOURNE, Fla., 1 March 2016. Harris Corp. (NYSE:HRS) is selling its aerostructures business, gained during its acquisition of Exelis in May 2015, for $210 million. “Proceeds from the transaction will be used to pay down debt,” says William M. Brown, Harris Corp. chairman, president, and chief executive officer.
Officials from Harris Corp. in Melbourne, Florida, and Albany International Corp. (NYSE:AIN) in Rochester, N.H., entered into a definitive agreement under which Albany International will acquire Harris’ Aerostructures business for an enterprise value of $210 million, including $187 million in cash at closing and the assumption of a $23 million capitalized lease.
Harris Aerostructures designs, manufactures, and assembles advanced composite structures found throughout commercial and military aircraft - from wings and tanks to rotor blades and the airframes that form the shell of the aircraft. These composites combine high-strength fibers that deliver many of the same benefits of metal -- strength, stiffness, stability and the ability to perform in extreme temperatures -- with the added benefit of less weight and more corrosion resistance.
The Aerostructures business, part of Harris’ Electronic Systems segment, was acquired as part of Exelis in May 2015. The business had calendar 2015 revenue of $77 million and operates in two facilities in Salt Lake City, Utah.
The transaction is subject to customary closing conditions and regulatory review, and is expected to close by the end of the first calendar quarter or early second calendar quarter of 2016.
Albany International is a global advanced textiles and materials processing company with two core businesses. Machine Clothing is a producer of custom-designed fabrics and belts essential to production in the paper, nonwovens, and other process industries. Albany International Engineered Composites is a rapidly growing supplier of highly engineered composite parts for the aerospace industry. Albany International is headquartered in Rochester, New Hampshire, operates 19 plants in 10 countries, employs 3,900 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the company and its products and services can be found at www.albint.com.
Harris Corp. is a technology provider focused on solving customers’ mission-critical challenges by providing solutions that connect, inform, and protect, officials say. Harris supports customers in more than 125 countries, has approximately $8 billion in annual revenue and 22,000 employees worldwide. The company is organized into four business segments: Communication Systems, Space and Intelligence Systems, Electronic Systems, and Critical Networks.
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