Goodrich Corp. (GR) has acquired United Kingdom based Crompton Technology Group, Ltd in an effort to strengthen its Actuation Systems business. The acquisition will expand the carbon fiber composite capabilities of Goodrich.
The innovative composite design, engineering and manufacturing experiences position Crompton Technology for future growth. Through this acquisition Goodrich will enjoy the benefits of Crompton’s anticipated growth and plans to utilize the composite capabilities in a broader range in its systems. Goodrich’s worldwide commercial and military customers will benefit from the use of Crompton’s technology in various products.
Crompton Technology Group is a privately-held company, which designs and manufactures advanced carbon fiber composite products for the aerospace, defense, advanced vehicle and clean energy markets. The products of the company are used during the production and development of different aerospace platforms. The composite design capabilities of Crompton Technology’s products are applied to flywheels and accumulators in the clean energy and advanced vehicle markets, and also in various other products.
Charlotte, North Carolina based Goodrich is a global supplier of systems and services to aerospace, defense and homeland security markets. The company serves a global customer base with significant worldwide manufacturing and service facilities.
During the first-quarter earnings call, Goodrich maintained its fiscal-year 2010 total sales expectation of $7.1 billion, which reflects a 6% growth from 2009 levels. Earnings per share are expected to range between $4.15 and $4.40. The guidance provided by the company does not include the impact of potential acquisitions and divestitures.
Cash and cash equivalents as of Mar 31, 2010, were $778.4 million. Goodrich continues to invest to further improve its prospects, and the capital expenditure for 2010 is expected to be in the range of $250 million to $275 million.
We appreciate the move of Goodrich to acquire Crompton Technology Group as it will benefit the Actuation System Business of the company. We maintain our Neutral outlook on Goodrich shares.
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