(By Balachander) Curtiss-Wright Corp. (NYSE: CW) is strengthening its industrial controls business through the acquisition of Williams Controls Inc. (NYSEAMEX: WMCO) for $15.42 per share or roughly $119 million.
The deal represents a premium of 41.3 percent to WMCO's previous closing price.
Portland, Oregon-based Williams Controls is engaged in the manufacture of highly-engineered electronic sensors and electronic throttle controls for off-road equipment, heavy trucks, and military vehicles. It also designs adjustable foot pedals and arm rests, a line of pneumatic products including air valves and switches.
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"The acquisition of Williams Controls, which will closely follow our acquisition of PG Drives, will strengthen and expand Curtiss-Wright's existing industrial controls business and is another step toward our vision to be the supplier of choice for driver control subsystems in specialty vehicles," commented Curtiss-Wright CEO Martin Benante.
"By combining Williams Controls' global leadership in electronic throttle controls with Curtiss-Wright's Motion Control segment, we can more quickly expand our pedal systems, sensors and joysticks to become a solutions supplier to all of our customers in the commercial truck and off-road markets," Williams Controls' CEO Patrick Cavanagh said.
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Williams Controls, which employs roughly 300 people, recorded sales of around $66 million in 2011.
The acquisition is expected to be completed late in the fourth quarter of 2012.
On Thursday, WMCO shares soared 41.43 percent to $15.43 and CW stock added 1.81 percent to trade at $31.43.