Goodrich Corporation (GR) completed the acquisition of AIS Global Holdings LLC, known as Atlantic Inertial Systems, from an investment affiliate of J.F. Lehman & Company. The purchase price was approximately $375 million. AIS Global also known as Atlantic Inertial Systems is a leading provider of mission-critical guidance, stabilization and navigation products and systems for the military and defense market.
Goodrich expects the company to be accretive to earnings in fiscal 2010. The acquired company mainly caters to prime defense contractors as well as U.S. and allied military forces around the world. Primary products include inertial sensors, inertial measurement units, integrated systems, stability systems and terrain avoidance systems for missiles, military aircraft and land systems.
AIS will become part of Goodrich’s Sensors and Integrated Systems business within its Electronic Systems segment. The acquisition will boost Goodrich’s Electronic Systems segment, where operating income has fallen 11% due to lower sales volume and unfavorable product mix in the recently reported third quarter of fiscal 2009.
Goodrich’s fortunes were down due to lower sales of engine controls, aviation airplane spares, and aviation airplane aftermarket sales. The company expects AIS’s portfolio of inertial sensors products to complement its guidance, control and navigation systems products.
Based in Charlotte, North Carolina, Goodrich is a supplier of components, systems and services to the commercial and general aviation airplane markets. The company mainly competes with Rockwell Collins Inc. (COL), and Alliant Techsystems Inc. (ATK).
The company also supplies systems and products to the global defense and space markets. Businesses include manufacturing, service and sales, which are carried out at various locations throughout the world. The company’s products and services are sold to customers in North America, Europe and Asia.
Goodrich operates through three business segments – Actuation and Landing Systems, Nacelles and Interior Systems, and Electronic Systems.
Actuation and Landing Systems provide components and systems in aircraft, used in take-off and landing, wheels and brakes, as well as actuation systems. Nacelles and Interior Systems produce aero-structures, aircraft interiors including lighting and cargo systems, and other services. The third operating segment, Electronic Systems, produces inputs for in-flight monitoring and control and safety data, as well as ice detection, ISR, and launch and missile telemetry systems.
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