8-KOther Events

CURTISS WRIGHT CORP 8-K Report (Apr 15, 2002)

Filed April 15, 2002For Securities:CW

Summary

Curtiss-Wright Corporation (CW) has announced a significant strategic acquisition, reporting on an 8-K filed on April 15, 2002. The company acquired the stock of Penny and Giles Controls Ltd., Penny and Giles Controls, Inc., and Penny and Giles Aerospace Ltd., along with substantially all assets of Autronics Corporation and the aerospace assets of Penny & Giles International Plc. from Spirent Plc. for $60 million in cash and the assumption of certain liabilities. This acquisition is designed to bolster Curtiss-Wright's motion control segment, integrating the acquired businesses into its Curtiss-Wright Flight Systems, Inc. subsidiary. The acquired operations generated $62 million in sales in 2001 and will continue to operate in their existing locations with current management and workforce. The company funded at least half of the purchase price using its revolving credit facility, indicating a well-planned financial execution of this growth initiative. Investors should note that while this acquisition is expected to enhance the company's market position, the forward-looking statements within the filing are subject to various risks and uncertainties inherent in the aerospace, marine, and industrial sectors.

Key Highlights

  • 1Curtiss-Wright Corporation acquired Penny and Giles Controls and Autronics Corporation assets for $60 million cash plus assumed liabilities.
  • 2The acquired businesses generated $62 million in combined sales during 2001.
  • 3The acquisition significantly strengthens Curtiss-Wright's Motion Control segment, operating under Curtiss-Wright Flight Systems, Inc.
  • 4The transaction was funded with at least 50% from the company's revolving credit facility.
  • 5The acquired operations, based in the UK, Germany, and US, will retain their existing locations, management, and workforce.
  • 6The acquisition is intended to expand Curtiss-Wright's capabilities in aerospace and industrial markets.
  • 7The filing includes standard forward-looking statements disclaimer, highlighting potential risks such as economic downturns, reduced orders, and competitive pressures.

Frequently Asked Questions

The primary purpose of this acquisition was to enhance and expand Curtiss-Wright's Motion Control segment, integrating the acquired businesses into its Curtiss-Wright Flight Systems, Inc. subsidiary to strengthen its presence in the aerospace and industrial markets.

The acquisition was financed by $60 million in cash and the assumption of certain liabilities. At least half of the cash portion was funded through the company's existing revolving credit facility. The acquired businesses generated $62 million in sales in 2001, suggesting a significant addition to Curtiss-Wright's revenue base.

The acquired businesses will operate as a division of Curtiss-Wright's motion control segment within Curtiss-Wright Flight Systems, Inc. They will maintain their existing locations, management teams, and employee workforces, suggesting a strategy focused on leveraging existing expertise and operational structures.

The filing explicitly mentions that forward-looking statements are subject to risks and uncertainties. These include potential reductions in anticipated orders, economic downturns, changes in the competitive marketplace or customer requirements, difficulties in performing customer contracts at anticipated cost levels, and general factors affecting aerospace, marine, and industrial companies.