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Curtiss-Wright Corporation announced that it has completed the acquisition of the Safran Aerosystems Arresting Company (SAA) for $240 million in cash. SAA is a designer and manufacturer of mission-critical, fixed-wing aircraft emergency arresting systems with a strong installed base of more than 5,000 systems worldwide including sales to more than 70 countries.
The acquisition of the Safran arresting systems business firmly establishes Curtiss-Wright as a leading global supplier of fixed-wing aircraft recovery and arresting systems, and increases the breadth of the Company’s global defense portfolio as approximately 75% of SAA’s sales are generated outside of the U.S. and support many NATO partners. SAA’s safety systems have a strong alignment to and are a logical adjacency with Curtiss-Wright’s existing helicopter landing and recovery systems, and the combination provides an opportunity to leverage our combined, long-standing relationships with leading defense customers supporting critical defense platforms.
The business will operate within Curtiss-Wright's Naval & Power segment. The acquisition supports Curtiss-Wright's financial objectives for long-term profitable growth and strong free cash flow generation. SAA generated sales of approximately $70 million in 2021, and it is expected to be accretive to Curtiss-Wright's adjusted diluted earnings per share in its first full year of ownership and produce a strong free cash flow conversion rate well in excess of 100%. The Company will update its 2022 financial guidance to include SAA’s contribution when it issues its second quarter 2022 results.
Through its predecessor companies, SAA created the first aircraft arresting system in 1960 and today is a world leader in land-based military arresting systems. Its diverse product portfolio includes energy absorbers, retractable hook cable systems, net-stanchion systems and mobile systems to support aircraft carrier and fixed land-based arresting systems. SAA’s aftermarket business, which is supported by the world’s largest installed base of arresting systems, provides cradle-to-grave support from civil engineering at installation, on-site qualification through post-installation maintenance, spares, and overhaul services. SAA employs nearly 140 people and maintains operations in Aston, Pa. and Merpins, France.