17 Nov 09. Goodrich Corporation (NYSE: GR) has signed an agreement with an investment affiliate of J.F. Lehman & Company to acquire AIS Global Holdings LLC (AIS). AIS, known as Atlantic Inertial Systems, is a leading provider of mission-critical guidance, stabilization and navigation
products and systems for the military and defense market. The transaction is expected to close by the end of 2009, subject to customary government approvals. Sales in 2009 for the business are expected to be approximately $180 million, and are expected to grow significantly over the next several years. The purchase price is approximately $375 million, reflecting a multiple of slightly less than nine times 2009 estimated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). The acquisition is expected to be slightly accretive to earnings in 2010, including the impact of purchase accounting adjustments. AIS employs approximately 800 people at facilities located in Cheshire, Conn; Heath, Ohio; Plymouth, UK; and Totowa, N.J. Major customers include defense prime contractors as well as U.S. and allied military forces around the world. Primary products include inertial sensors, inertial measurement units (IMUs), integrated IMU/GPS systems, stability systems, and terrain avoidance systems for missiles, military aircraft and land systems. AIS will become part of Goodrich’s Sensors and Integrated Systems business, within its Electronic Systems segment.
Marshall Larsen, Goodrich Chairman, President and Chief Executive Officer said, “This acquisition provides the company with another high growth platform in the defense market that builds on existing Goodrich capabilities. AIS’ portfolio of inertial sensors is an excellent complement to Goodrich’s guidance, control and navigation systems. Combining our engineering strengths and technology will enable us to further support U.S. and allied forces across the full spectrum of guidance and control systems. AIS joins our other recent acquisitions such as Sensors Unlimited, TEAC Aerospace, Recon/Optical and Cloud Cap Technology in advancing performance and capability for our customers, and clearly supports our balanced growth strategy to increase our defense footprint with proprietary products that the military needs today.”
Christopher Holmes, Chief Executive Officer of AIS, said, “We are
looking forward to joining Goodrich and combining our capabilities to benefit the markets we serve.”
J.F. Lehman & Company is a private equity investment firm that focuses exclusively on acquiring middle market companies in the defense, aerospace and maritime industries.
AIS commented that Goodrich views AIS as a high growth platform with exceptional technological capabilities. As such, it will be an
excellent complement to Goodrich’s Sensors and Integrated Systems business within its Electronic Systems segment. The combination of AIS with Goodrich is one that will benefit all of our customers and will enable our US and UK businesses to continue their trajectory of profitable growth.
Over the past two years, AIS has been fortunate to earn a leading market reputation across the globe. The credit for this goes to each of our employees who have worked so diligently to create such a strong business and brand name on both sides of the Atlantic. I want to take this opportunity to thank you personally for the hard work and commitment you have shown this company.
Another chunk of U.K. engineering excellence goes across the Atlantic. This is a smart move by Goodrich at a time when AIS’s IMU’s are developing a huge market in the USA at the expense of competitor Honeywell. The company recently displaced Honeywel as IMU supplier for the Raytheon Excalibur Program and is belived to be in talks with Lockheed martin as a potential supplier for IMUs on the DAGR missile systems and the new Hellfire ‘R’ varian which will replace the current autopilot with an