(By Balachander) Woodward Inc. (NASDAQ: WWD) agreed to acquire a business from General Electric Co.'s (NYSE: GE) aviation unit for $200 million to strengthen its aerospace business.
The designer of controls systems expects the purchase to slightly add to its earnings per share for fiscal year 2013.
"The acquisition of the Duarte Business by Woodward's Aerospace segment provides us with expanded motion control technologies and platforms, more specifically Thrust Reverser Actuation Systems," commented Woodward CEO Thomas Gendron.
The Duarte Business includes customers such as Boeing, GE, Safran and the U.S. government. Its products are used primarily on commercial aircraft such as the Boeing 737, 747 and 777, and Airbus A320.
According to Woodward, the Duarte Business' sales are expected to be roughly $150 million for fiscal 2013.
Woodward said it has committed financing and available cash sufficient to fund the payment of the purchase price and also provide short-term liquidity after closing. Woodward added it has a $400 million revolving credit facility in place, substantially all of which is currently available.
Woodward's aerospace systems and components optimize the performance of fixed wing and rotorcraft platforms in commercial, business and military aircraft, ground vehicles and other equipment.
WWD shares fell 0.69 percent to trade at $37.39 on Friday.