DAVIDSON, N.C.--(BUSINESS WIRE)--
Curtiss-Wright Corporation (NYSE: CW) today announced that it has completed the acquisition of the Dresser-Rand Government Business (Dresser-Rand), a business unit of Siemens Government Technologies which is a wholly-owned U.S. subsidiary of Siemens AG in Germany, for $212.5 million in cash. Dresser-Rand is a leading designer and manufacturer of mission-critical, high-speed rotating equipment solutions, including reciprocating compressors, steam turbines and steam system valves, supporting most major U.S. Navy shipbuilding programs. In addition, Dresser-Rand is the sole supplier of steam turbines and main engine guard valves on all aircraft carrier programs.
The acquisition significantly increases Curtiss-Wright’s footprint on U.S. Navy Nuclear vessels, expands our existing U.S. Navy aftermarket business and provides an opportunity to leverage Dresser-Rand’s prominent presence at U.S. Navy shipyards. Through its three service centers, it is a leading provider of ship repair and maintenance for the U.S. Navy’s Atlantic and Pacific fleets.
The business will operate within Curtiss-Wright's Power segment and its sales are principally to the naval defense market, with additional sales to the power generation market. The acquisition supports our long-term financial objectives for increased sales growth, margin expansion and strong free cash flow generation. Excluding the effects of purchase accounting, it is expected to be accretive to Curtiss-Wright's 2018 earnings per share and produce a free cash flow conversion in excess of 100%.
Dresser-Rand equipment is used on hundreds of U.S. Navy ships to provide power and compression for propulsion, pump drives, ship service air, oxygen/nitrogen (O2N2) feed air, generator drives, and deballasting. The service centers primarily focus on overhauls of Dresser-Rand legacy equipment, emergent U.S. Navy shipyard repair needs and global service work pursuant to several key OEM service agreements. Dresser also produces the Terry©-branded steam turbine feedwater pumps for the commercial nuclear power market. The Dresser-Rand government business employs approximately 150 people.
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE:CW) is a global innovative company that delivers highly engineered, critical function products and services to the commercial, industrial, defense and energy markets. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing reliable solutions through trusted customer relationships. The company employs approximately 8,600 people worldwide. For more information, visit www.curtisswright.com.
This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 that are based on management's beliefs and assumptions. Such statements, including statements relating to Curtiss-Wright Corporation's expectations for the future opportunities associated with the acquisition, the success of transferring Dresser-Rand’s technology throughout our existing world-wide network, and the success of the Company integrating Dresser-Rand into its Power segment are not considered historical facts and are considered forward-looking statements under the federal securities laws. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in competitive marketplace and/or customer requirements; a change in US government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, marine, electronics and industrial companies. Please refer to the Company's current SEC filings under the Securities Exchange Act of 1934, as amended, for further information.
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