Flight control actuation system designer Microtecnica to be bought by Goodrich

Posted by John McHale
CHARLOTTE, N.C., 1 April 2011. In a move to strengthen its position in the helicopter market Goodrich has agreed to acquire flight controlactuation systems company Microtecnica S.r.l in Turin, Italy .
In addition to the helicopter market Microtecnica also supports regional and business aircraft, missile actuation, and aircraft thermal and environmental control systems.
"This acquisition supports our business model and fits with our strategy by increasing Goodrich's exposure to three growth markets; commercial and military helicopters, commercial regional, business, and general aviation aircraft, and missile actuation," says Marshall Larsen, Goodrich chairman, president and chief executive officer. "Microtecnica's manufacturing capacity and engineering resources are an excellent complement to Goodrich's flight control actuation business as well as providing support to the environmental and thermal controls market as a capable supplier of components and sub-systems."
Goodrich officials signed an agreement for the acquisition with SSCP Aero Holdings S.C.A., a company backed by the European private equity firm Stirling Square Capital Partners.
The transaction is expected to close during the second quarter of 2011, subject to customary government approvals. Sales for the full year 2011 for the business are expected to be approximately $220 million, and are expected to grow significantly over the next several years, company officials say. Total cash consideration for the acquisition is approximately 330 million Euros ($462 million at an exchange rate of 1.40), reflecting a multiple of approximately 11.5 times 2011 estimated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The acquisition is expected to be slightly accretive to earnings in 2011, including the impact of purchase accounting adjustments, and solidly accretive thereafter.