Rockwell Collins to purchase ARINC for USD1.4bn

Rockwell Collins Inc announced (11-Aug-2013) it reached a definitive agreement to acquire ARINC Incorporated, a portfolio company of The Carlyle Group for USD1.39 billion. ARINC is a provider of communications and information processing solutions for the commercial aviation industry. Rockwell Collins and ARINC will bring together two leading players in the growing field of aviation information management, combining ARINC's networks and services with avionics and cabin technologies developed by Rockwell Collins. The purchase Accelerates Rockwell Collins' growth in flight services by bringing together best-in-class international and regional trip support solutions. Rockwell Collins CEO and president Kelly Ortberg said the acquisition is a "natural fit" for the company and "accelerates our strategy to develop comprehensive information management solutions by building on our existing information-enabled products and systems and ARINC's ground-based networks and services to further expand our opportunities beyond the aircraft." In addition, ARINC provides communications and information processing for the rail, industrial security and public safety segments. Their 2013 revenues are expected to be in excess of USD600 million. When completed, the acquisition will shift the balance of Rockwell Collins' business to approximately 54% commercial and 46% government. The transaction is expected to close upon receipt of regulatory approvals and other customary conditions. It is expected to be earnings per share accretive once certain transaction and integration costs have been incurred. Citi was the financial advisor to the company. [more - original PR]