From: BF Goodrich Company
Posted: Wednesday, November 29, 2000
In a strategic move that adds to its position in safety and space-flight systems, The BFGoodrich Company ( has signed a definitive agreement with Autoliv Inc. to acquire its OEA aerospace unit. OEA supplies pyrotechnic devices for space, missile, and aircraft systems. The companies expect to complete the cash transaction by year-end or early 2001, pending completion of government reviews. The purchase price was not disclosed.
The addition of OEA's major product lines in cartridge and propellant activated devices will expand BFGoodrich's current product offerings, improve product performance, and facilitate growth into complete cockpit escape systems and space-related applications. The company anticipates that OEA will be integrated quickly and that the transaction will be accretive in the first year. Current OEA annual revenues are approximately $35 million.
In commenting on the transaction, Jack Carmola, President of Engine and Safety Systems at BFGoodrich Aerospace, said, ``This acquisition will broaden our product and technology portfolio, and when added to our existing products, position BFGoodrich as a market leader in energetic and pyrotechnic materials.'' Mr. Carmola added, ``OEA is another example of our strategy of building substantial and profitable businesses through small-to-medium complementary acquisitions enhanced by internal capabilities.'' Earlier this month, BFGoodrich announced a definitive agreement to acquire Raytheon Optical Systems to leverage its leadership position in supplying attitude determination and control systems for space markets.
BFGoodrich's growth in safety systems began two years ago when it acquired the Universal Propulsion Company (UPCO), a manufacturer of energetic materials and pyrotechnic devices with applications in ejection seats and inflatable escape slides. The company also acquired the ACES II ejection seat business from The Boeing Company. In addition, with the acquisition of IBP Aerospace Group, Inc., BFGoodrich obtained the rights to further develop and market an advanced Russian ejection seat technology, the K-36/3.5A, for U.S.-built aircraft. BFGoodrich has also extended its capabilities into passenger restraint systems for aircraft with its Inflatabelt(TM) restraint systems, which feature an inflatable device within a harness that is triggered in an accident to provide passenger protection.
The BFGoodrich Company has its headquarters in Charlotte, North Carolina and employs 27,000 people worldwide. BFGoodrich's major business segments currently include Aerospace, Performance Materials and Engineered Industrial Products. Its Aerospace Segment, which accounts for $3.6 billion of the company's $5.5 billion in annual sales, is one of the world's leading suppliers of components, systems, and services to the aerospace industry. The company was recently included as number six in Fortune magazine's top 10 ranking of the most admired companies in the aerospace industry. In April 2000, the company announced plans to divest the Performance Materials Segment. For more information, please visit our website at www.bfgoodrich.com.
Autoliv Inc. develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures Autoliv has close to 80 facilities with almost 30,000 employees in more than 30 vehicle-producing countries. In addition, the company has eight technical centers around the world, including 19 test tracks, more than any other automotive safety supplier. Sales in 1999 amounted to US $3.8 billion and net income US $200 million. The company's shares are listed on the New York Stock Exchange and its Swedish Depositary Receipts on the OM Stockholm Stock Exchange.
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