Rockwell Collins Inc. (COL) To Acquire B/E Aerospace Inc. (BEAV) For $6.4 Billion. The deal has yet to be approved by regulators and shareholders. Expected time of acquisition completion is spring 2017.
U.S. aircraft component maker Rockwell Collins announced Sunday it will acquire aircraft interior maker B/E Aerospace for roughly $6.4 billion in a cash-and-stock transaction. With the assumption of $1.9 billion in debt, the total value of the deal adds up to $8.3 billion, the company said in a statement, adding that the deal would produce cost savings of nearly $160 million.
The deal, yet to be approved by regulators and shareholders of both companies, values B/E Aerospace at $62 a share in cash and stock — a 22.5 percent premium over its closing price on Friday. Under the terms of the agreement, B/E Aerospace shareholders will receive $34.10 per share in cash, and $27.90 in Rockwell Collins shares. The acquisition is expected to be completed by spring 2017.
Rockwell Collins’ decision to acquire B/E Aerospace — the world’s largest supplier of aircraft cabin equipment — marks its largest acquisition to date. In 2013, the company bought the transport communications company Arinc for $1.39 billion, which, at the time, was its biggest acquisition.
On Friday, shares of Rockwell Collins, which have dropped nearly 9.5 percent this year, closed up 1 percent on the New York Stock Exchange, while B/E Aerospace’s shares remained flat on Nasdaq.