Esterline to acquire Canada-based CMC Electronics, an international aerospace/defense avionics company

BELLEVUE, Wash., 2 Feb. 2007. Esterline Corporation has entered into an agreement to acquire CMC Electronics Inc., an aerospace/defense avionics company, for approximately $335 million in cash. For the 12 months ended September 30, 2006, CMC recorded revenues of $205 million Canadian.

Feb 2nd, 2007

BELLEVUE, Wash., 2 Feb. 2007. Esterline Corporation has entered into an agreement to acquire CMC Electronics Inc., an aerospace/defense avionics company, for approximately $335 million in cash. For the 12 months ended September 30, 2006, CMC recorded revenues of $205 million Canadian.

Completion of the transaction is expected in 30 to 45 days, contingent upon Hart-Scott-Rodino and other governmental approvals.

CMC is a leader in the design, manufacture, sales, and support of high-technology electronics products for aviation including GPS (global positioning systems), head-up displays, enhanced vision systems, electronic flight bags, and flight management systems. The company employs more than 1,100 people at its principal locations in Montreal, Quebec; Ottawa, Ontario; and Chicago, Ill.

Formerly known as Canadian Marconi Company and later as BAE Systems Canada, CMC is a private company controlled by an investor group led by ONCAP L.P. ONCAP is an investment fund established by Onex Corporation and a number of leading financial institutions. Onex is one of Canada's largest companies.

Esterline was advised in this transaction by Bear Stearns; CMC was advised by Jefferies Quarterdeck, a division of Jefferies & Company, Inc.

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