cloudyn.png
Friday September 25th, 2020 6:29AM

Woodward, Hexcel attempt to become a force in aerospace

By The Associated Press

Woodward and Hexcel are merging in an all-stock deal that would create one of the largest suppliers in the aerospace and defense industry.

The companies say the tie-up will allow them to create more efficient aircraft that will reduce emissions, a big hurdle for the aerospace industry.

“The future of flight and energy efficiency will be defined by next-generation platforms delivering lower cost of ownership, reduced emissions, and enhanced safety – and a combined Hexcel and Woodward will be at the forefront of this evolution," Hexcel CEO Nick Stanage said in a prepared statement.

Hexcel's stock jumped 9.6% at the opening bell Monday. Shares of Woodward rose 5.1%.

The new company, called Woodward Hexcel, will generate more than $5 billion in annual sales with a market capitalization nearing $14 billion and more than 16,000 employees.

Woodward Hexcel will have manufacturing operations in 14 countries on five continents.

Both companies supply Airbus and Boeing, including parts for the 737 Max. With Boeing ensnared in one if its biggest crisis following the crash of two of its marquee aircraft, industry analysts speculate the deal may have been pushed forward to better position the combined company with Airbus.

“With Airbus’ share of the commercial aerospace market likely to gradually rise, Woodward believes Hexcel’s strong European sales force and Airbus market position should help it rapidly expand its market position," analyst Nicholas Heymann of William Blair wrote.

Hexcel shareholders will receive a fixed exchange ratio of 0.625 shares of Woodward Inc. common stock for each share of Hexcel Corp. stock that they own. Woodward shareholders will continue to own the same number of shares in the combined company as they do immediately prior to the closing.

Existing Woodward shareholders will own about 55% of the combined company, with Hexcel shareholders owing about 45%.

Stanage will serve as CEO of the combined company. Woodward President, Chairman and CEO Tom Gendron will serve as executive chairman of the combined company until the first anniversary of the merger's closing. At that time Gendron plans to retire and will then serve as non-executive chairman of the combined company until the second anniversary of the merger's closing. At that point, Stanage will take on the additional role of chairman.

The combined company’s board will have 10 members, consisting of five directors from each company, including Gendron and Stanage.

The combined business will be based in Fort Collins, Colorado, where Woodward has its headquarters. Hexcel is based in Stamford, Connecticut.

The deal is expected to close in the third quarter. It still needs approval from the shareholders of both companies, as well as regulatory approvals.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Despite differences, Spain's leftists try coalition politics
Spain's first coalition government in the four decades since the return of democracy took shape Monday as 22 Cabinet ministers took their oaths of office
11:31AM ( 19 minutes ago )
US, UK officials meet as PM Johnson's Huawei decision nears
British and American officials are meeting as U.K. Prime Minister Boris Johnson's government prepares to decide on whether there's a future for Chinese equipment maker Huawei in the country's next-generation telecom networks
11:30AM ( 19 minutes ago )
Change that can win? Democrats grapple with core question
Democratic voters across the country are grappling with a core question as they size up their party's leading candidates three weeks before primary voting begins: How much change is too much in 2020? It's a question that has plagued candidates and voters over the last year in the Democratic Party's quest to identify the person best positioned to defeat President Donald Trump in November
11:29AM ( 21 minutes ago )
Associated Press (AP)
High anxiety: Proposed US hemp rules worry industry
Hemp was ushered in as a federally legal agricultural crop under the groundbreaking 2018 Farm Bill
10:57AM ( 52 minutes ago )
Lava gushes from volcano near Manila; tens of thousands flee
Red-hot lava is spewing from a volcano near the Philippine capital of Manila
10:19AM ( 1 hour ago )
AP Business
Ex-drug company execs face reckoning in opioid bribery case
The founder and former top employees of a pharmaceutical company are being sentenced in a bribery scheme that prosecutors say helped fuel the national opioid epidemic
3:27PM ( 20 hours ago )
Aramco's 'greenshoe option' pushes IPO to record $29.4B
Saudi oil giant Aramco's initial public offering raised $29.4 billion, more than previously announced after the company says it used a so-called “greenshoe option” to sell an additional 450 million shares to meet investor demand
5:46AM ( 1 day ago )
GrubHub says it currently has no plans to sell its business
Grubhub says it has no plans to sell the company
8:16PM ( 2 days ago )
AP Business - Corporate News
Despite differences, Spain's leftists try coalition politics
Spain's first coalition government in the four decades since the return of democracy took shape Monday as 22 Cabinet ministers took their oaths of office
11:31AM ( 19 minutes ago )
US, UK officials meet as PM Johnson's Huawei decision nears
British and American officials are meeting as U.K. Prime Minister Boris Johnson's government prepares to decide on whether there's a future for Chinese equipment maker Huawei in the country's next-generation telecom networks
11:30AM ( 19 minutes ago )
Change that can win? Democrats grapple with core question
Democratic voters across the country are grappling with a core question as they size up their party's leading candidates three weeks before primary voting begins: How much change is too much in 2020? It's a question that has plagued candidates and voters over the last year in the Democratic Party's quest to identify the person best positioned to defeat President Donald Trump in November
11:29AM ( 21 minutes ago )
Weinstein back in court as jurors winnowed for rape trial
Hollywood mogul Harvey Weinstein is back in court as jury selection resumes in his sexual assault trial
11:25AM ( 24 minutes ago )
Thailand reports case of coronavirus from China
Health officials say a Chinese visitor to Thailand has been confirmed to be infected with a new strain of coronavirus that has been linked to a pneumonia outbreak in central China
11:22AM ( 27 minutes ago )