Rockwell Collins will acquire B/E Aerospace for approximately $6.4 billion in cash and stock. Under the terms of the deal Rockwell Collins will also assume $1.9 billion in net debt, pushing the total deal value to $8.3 billion.
B/E Aerospace share owners will get $34.10 per share in cash. Rockwell Collins will receive $27.90 in common stock shares, subject to a 7.5% collar.
“This transformational acquisition is consistent with our strategy to accelerate growth and build value through market-leading positions in cockpit and cabin solutions,” said Kelly Ortberg, chairman, president and CEO, Rockwell Collins. “We see tremendous opportunity to better serve our commercial aviation, business jet and military customers through broader offerings.”
Amin Khoury, founder and chairman, B/E Aerospace, said, “Our combination with Rockwell Collins represents an excellent outcome for B/E Aerospace’s stockholders, who will receive an immediate premium as well as a substantial equity interest in a strong combined company with a broader range of products, customers, and the combined expertise and resources to create future value.”
“We feel confident that this combination delivers significant long-term benefits neither company could realize on its own. We look forward to becoming part of Rockwell Collins and leveraging their technology to accelerate our long-term growth as we embark on the next chapter in the company’s history.” said Khoury.