B/E Aerospace Inc. announced Monday that it has agreed to acquire New York Fasteners Corp. for approximately $68 million in cash. The acquisition, which will be funded with borrowings under B/E’s senior secured credit facility, is subject to customary closing conditions and is expected to be completed in August 2006.
B/E plans to merge NYF’s complementary hardware distribution and vendor-managed inventory business with its own distribution operations based in Miami, Fla. The integration of NYF with B/E’s distribution segment is expected to create procurement and operational synergies and significantly expand B/E’s overall penetration into the military sector.
The combination of NYF’s vendor-managed inventory and third-party logistics capabilities and strong military and defense customer relationships, coupled with B/E’s advanced automated stocking and retrieval systems is expected to allow B/E to offer a significantly wider range of products and services to a larger and broader customer base.
Over 70 percent of NYF’s annual revenues are derived from military and defense customers. The acquisition of NYF is expected to bring B/E’s total sales to the military and defense market to over $100 million annually.