BFGoodrich has taken over Coltec Industries in a $2.2 billion merger, creating a company with interests in aerospace, speciality chemicals and industrial products, with annual revenues of nearly $6 billion. It is the second major aerospace acquisition of the year for BFGoodrich.
The deal is to be completed early next year after approval by shareholders and anti-trust regulators. The merged company will move to Coltec's headquarters in Charlotte, North Carolina. BFGoodrich is based at Richfield, Ohio.
David Burner, BFGoodrich's chairman and chief executive, will head the new company, while Coltec chairman and chief executive John Guffey will become a member of the new company's board, an executive vice-president and president and chief operating officer of the industrial business. BFGoodrich's Marshall Larsen becomes president and chief operating officer of the combined aerospace business unit.
Coltec's aerospace product line is based on six subsidiaries, including landing gear specialist Menasco, engine controls manufacturer Chandler Evans Control Systems and seat manufacturer AMI. The company also has a range of non-aerospace activities, primarily in the engineering sector. Sales for the first nine months of this year totalled $1.13 billion, an 18% rise on the previous year. Aerospace accounted for just under half of the total sales and operating income. The business was boosted by the 1997 acquisition of AMI.
BFGoodrich says the merger is likely to result in a saving of some $60 million by 2001. Earlier this year the company purchased nacelles and thrust reversers producer Rohr for $1.7 billion.
Source: Flight International
