Esterline Corporation to Acquire CMC Electronics
CMC Electronics Inc. announces that an agreement has been reached regarding the acquisition by Esterline Corporation of Bellevue, Washington, of CMC Electronics Inc.
September 19, 2007 By Carey Fredericks
(Montreal, Canada February 1, 2007) CMC Electronics Inc. announces that an agreement has been reached regarding the acquisition by Esterline Corporation of Bellevue, Washington, of CMC Electronics Inc. Esterline is a leading worldwide supplier to the aerospace and defence industry, and is specialized in three core areas: Avionics & Controls; Sensors & Systems; and Advanced Materials. Esterline has approximately 8,000 employees. It operates 34 units in 11 states in the U.S., plus France, Germany, the U.K. and China. Its shares are traded on the NYSE under the trading symbol ESL. Completion of the transaction is expected in approximately two months time, contingent on customary closing conditions.
The transaction significantly expands the scale of Esterlines existing Avionics & Controls business and fits our stated strategy to consolidate manufacturers of superior aerospace systems and components, said Robert W. Cremin, Esterline's chief executive officer. This is a great acquisition for us and our customers. CMC is a premier systems integrator of high technology avionics and is a natural evolution following our successful performance as a Tier I supplier to Boeing for the 787 cockpit Overhead Panel System." Cremin said the transaction &takes us a long way in adding to the tool kit of solutions that we are assembling for our avionics customers. And, it is in line with requests from those customers that we expand the value added products and services we bring to them.
Jean-Pierre Mortreux, president and CEO, CMC Electronics, said: We are delighted that Esterline has chosen to acquire CMC Electronics and welcome this very positive development for our company. The transaction, we believe, will reinforce our business strategy and provide significant opportunities for continued growth and success. We believe that CMC and Esterline are well positioned to build on the complementary strengths and opportunities in our business areas. Mortreux added: We have appreciated the support of ONCAP L.P., the investment fund established by Onex Corporation and a number of leading financial institutions, which acquired our company in 2001. Since that time, ONCAP has fully supported our development of new aviation products and the expansion of CMC Electronics.
CMC Electronics designs and produces leading technology electronics products, including Flight Management Systems, Enhanced Vision Systems, Electronic Flight Bags and Satcom antennas for the aviation and global positioning markets. CMCs focus is on delivering innovative cockpit systems integration and avionics solutions to its customers worldwide. Its principal locations are in Montreal, Quebec; Ottawa, Ontario; and Chicago, Illinois. The company has been designing and building innovative electronics systems since 1902.