Satair has signed a preliminary agreement to acquire all the assets and
activities of Aero Hardware, Florida, USA. Aero Hardware is engaged in the
processing and adaptation of hydraulic hoses for the aerospace industry and
specializes in the products from Eaton Aerospace. Once the transaction has been
closed it is expected to contribute some USD 16 million in revenue growth to
Satair during the first twelve month period.
”The decision to acquire Aero Hardware builds upon a number of strategic
considerations: besides supporting the fulfilment of Satair's growth ambitions
it will help expand our product offerings and strengthen relations with Eaton
Aerospace, one of our biggest suppliers. It also holds an attractive potential
for generating additional sales of Aero Hardware's products, as now they can be
sold through Satair's global sales organization and are used in practically all
types of aircraft. This makes the acquisition a unique fit for our strategy”,
explains John Stær, CEO of Satair.
The parties have agreed on a total price of USD 13.5 million of which goodwill,
etc., is expected to account for approx. USD 10 million. USD 8.5 million will
be paid at the signing of the contract, while the remaining USD 5.0 million
will be converted into an interest-free loan to be repaid in full after a
period of 12 months.
Besides making an estimated revenue contribution of approx. USD 16 million
during the first 12 months, the agreement entails a number of additional sales
opportunities involving Satair's global sales organization with a potential for
significant activity growth over a number of years.
The business relations between Satair and Aero Hardware go back several years,
and in recent years Aero Hardware has been acting as sub-supplier to Satair.
Closing of the acquisition is scheduled for the first quarter of fiscal 2010/11
starting on July 1, 2010.
About Aero Hardware and the integration into Satair
Aero Hardware specializes in the production of hydraulic hoses for the
aerospace industry, and its special competencies give it access to a very broad
product portfolio. Raw materials and components are bought in from Eaton
Aerospace to be adapted to the specific needs of the customers. The products
are used in all Airbus and Boeing aircraft as well as in practically all other
types of aircraft, both large and small.
The products have been sold primarily to the commercial Aftermarket, to small
aircraft manufacturers (OEMs) and to the military segment in North and South
America. Satair has mainly been supplying Aftermarket customers in Europe and
Asia with comparable products from Eaton.
The company's operations will remain at the current location in Miami and will
be made an integral part of Satair USA Inc. Aero Hardware has 27 employees.
”We are doing a targeted effort to ensure that Satair fulfils an
ever-increasing number of customers' needs. Customers wish to concentrate their
purchasing on a few central suppliers to achieve efficiencies in both
purchasing, transportation and product handling. With the acquisition of Aero
Hardware Satair strengthens its position in the global Aftermarket, and that
will allow us to contribute even more added value to our customers”, says John
Stær.
Outlook for 2009/10 and 2010/11
The acquisition of Aero Hardware will have no effect on revenue and earnings in
the current fiscal year ending June 2010. The effect on revenue and earnings
will be included in the guidance for 2010/11 to be announced on September 14,
2010 together with Satair's Annual Report 2009/10.
Further information
CEO John Stær, tel. +45 3247 0104, e-mail: jst@satair.com or CFO Michael
Højgaard, tel. +45 3247 0126, email: mih@satair.com.
