Esterline Offers To Buy Souriau Group For $715M

Aerospace industry manufacturer Esterline Corp. said that it has made a binding offer to acquire privately held Souriau Group for about $715 million.

BELLEVUE, Wash. (AP) -- Aerospace industry manufacturer Esterline Corp. said Wednesday that it has made a binding offer to acquire privately held Souriau Group for about 483 million euro ($715 million).

Souriau, which is based in Versailles, France, is a global supplier of engineered connectors for harsh environments. It serves the aeronautics defense, space, power generation, rail and industrial equipment industries.

Esterline said it entered into negotiations with Sagard Private Equity Partners, Souriau's primary shareholder, and other shareholders to acquire all the outstanding stock of Souriau. The transaction is expected to be completed in July pending regulatory approval.

Esterline expects to finance the acquisition through a combination of cash and international debt.

The Bellevue company said the acquisition will expand its growth opportunities and supplement its presence in France.

If finalized, Esterline said it expects to become more efficient across the consolidated business, including a more effective supply chain.

Souriau expects to record sales of about 238 million euro (about $350 million at current exchange rates) for the 12 months ending in June. It has operations in six countries and employs over 2,300 people.

Esterline said it expects the acquisition, if finalized, to contribute about $95 million in revenue and, excluding one-time transaction-related charges, earnings ranging between 8 cents and 10 cents per share in the fiscal fourth quarter.

For fiscal 2012, Esterline said the acquisition is expected to contribute about $400 million in revenue and earnings in a range between 35 cents and 45 cents a share.
More in Supply Chain