Rockwell Collins, Inc. COL today announced it has successfully completed the acquisition of ARINC Incorporated from The Carlyle Group for $1.4 billion.
“With this move we take a major leap forward to realizing our vision of providing a richer set of seamless information management solutions that encompass the aircraft and ground-based systems,” said Kelly Ortberg, CEO and president of Rockwell Collins. "The acquisition represents an exciting new growth platform for Rockwell Collins and shifts the balance of the company toward the expanding commercial aviation sector."
“Combining ARINC's high-performance, high-quality and high-assurance networks and services with our information systems onboard the aircraft strengthens our ability to deliver improved efficiency and safety, and enhanced connectivity,” added Ortberg. “In addition, the acquisition opens up adjacent market opportunities by leveraging ARINC's strong presence in airport information systems and the broader transportation and security segments.”
Integration process
The company expects the impact of the
acquisition to be EPS accretive once certain transaction and integration
costs have been incurred. The majority of integration activities are
expected to be completed in six to nine months. For the near term,
customers can expect business as usual, and should continue to work with
their current sales representatives, customer service centers and
web-based resources.
Related divestures
To serve the best interests of the
industry, and avoid any perceived conflicts of interest, Rockwell
Collins has completed the sale of ARINC's Industry Standards
Organization to SAE International simultaneously with the completion of
the ARINC acquisition. In addition, due to a lack of fit with its
long-term strategy, Rockwell Collins has initiated preparatory efforts
to divest ARINC's Aerospace Systems Engineering and Support business,
which provides military aircraft integration and modifications,
maintenance, and logistics and support. In total these businesses
accounted for approximately 15 percent of ARINC's FY'13 revenues.
About Rockwell Collins
Rockwell Collins COL is a
pioneer in the development and deployment of innovative communication
and aviation electronic solutions for both commercial and government
applications. Our expertise in flight deck avionics, cabin electronics,
mission communications, information management, and simulation and
training is delivered by a global workforce, and a service and support
network that crosses 27 countries. To find out more, please visit www.rockwellcollins.com.
Safe Harbor Statement
This press release contains statements
(such as projections regarding future performance) that are
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from
those projected as a result of certain risks and uncertainties,
including those set forth in the company's SEC filings and the risks
inherent in the integration of ARINC into Rockwell Collins.
Rockwell Collins, Inc.
Media Contacts:
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Yeoman, 319-431-0864
ddyeoman@rockwellcollins.com
or
Pam
Tvrdy-Cleary, 319-431-0951
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Relations Contact:
Ryan Miller, 319-295-7575
investorrelations@rockwellcollins.com
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