aerobd.news : Rockwell Collins, a global leader in high-integrity solutions for aerospace and defense based in Cedar Rapids, Iowa, has announced an agreement with B/E Aerospace, a leading manufacturer of aircraft cabin interior products headquartered in Wellington, Florida, to purchase the company for US$6.4bn, along with US$1.9bn in net debt, making a total of US$8.3bn.

The transaction combines Rockwell Collins’s capabilities in flight deck avionics, cabin electronics, mission communications, simulation and training, with B/E Aerospace’s range of seating, food and beverage preparation and storage equipment, lighting, and oxygen systems.

Kelly Ortberg, chairman, president and CEO of Rockwell Collins, said, “This transformational acquisition is consistent with our strategy to accelerate growth and build value through market-leading positions in cockpit and cabin solutions. We see tremendous opportunity to better serve our commercial aviation, business jet and military customers through broader offerings.

“B/E Aerospace has a leading position in nearly all the segments it serves and a highly visible, long-cycle backlog. Beyond new aircraft deliveries, its US$12bn installed base provides a strong flow of aftermarket retrofit opportunities that balances our current cyclical exposure to OEM production rates.

“Additionally, our combined portfolio uniquely positions us to integrate cabin products, smart network technologies and connectivity solutions to significantly enhance aircraft uptime and airline profitability while improving the experience of passengers and airline personnel.”

Amin Khoury, B/E Aerospace founder and chairman, added, “We feel confident that this combination delivers significant long-term benefits neither company could realize on its own. We look forward to becoming part of Rockwell Collins and leveraging their technology to accelerate long-term growth as we embark on the next chapter in the company’s history.”