Goodrich Corporation (GR) announced that it has acquired Winslow Marine Products Corporation, a leading provider of life rafts to the corporate aviation, helicopter, and marine markets. The transaction closed on September 30, 2011.
Winslow, a privately-held company, employed approximately 70 people at its Lake Suzy, Florida facility. Winslow products were used by the leading corporate and business aircraft manufacturers, and are custom-designed to fit in a variety of aircraft interior configurations. Winslow also successfully applied its aviation life raft design capabilities to the commercial helicopter market.
Goodrich is a global supplier of components and systems for communications and avionics. Most of the company’s products are sold to government and commercial customers that give way to higher volume sales and create economies of scale, thus helping in winning more cost-sensitive government contracts. The company also provides equipment for the niche market.
The bullish outlook for Goodrich is supported by its geographically-diverse customer mix, its diverse presence in the market for commercial and business jets, resurgence in commercial aftermarket sales, a strong balance sheet, an incremental dividend and an ongoing share repurchase program.
Earlier in September 2011, United Technologies Corp. (UTX) announced that it would acquire Goodrich for $18.4 billion, including the assumption of $1.9 billion in debt. The deal is expected to close in mid-2012.
Based in Charlotte, North Carolina, Goodrich Corporation supplies components, systems and services to the commercial, regional, business and general aviation markets in the U.S. and other parts of the world. Goodrich also supplies aircraft and satellite systems to the global military and space markets. Goodrich’s products and services are principally sold to customers in North America, Europe and Asia.
Goodrich presently retains a short-term Zacks #3 Rank (Hold). We have a long-term Neutral recommendation on the stock. The cautious stance stems from the uncertainty in the recovery of the large commercial airplane original equipment market, along with possible defense cutbacks, dependence on international sales, high research and development overheads and regulatory risks.
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