BFGoodrich and Coltec Industries completed their $2.2 billion merger on 12 July, after agreements were reached with AlliedSignal and Crane to preserve competition in the US landing system industry.
The agreements ended lawsuits which had blocked the deal, but left the "strategic and economic fundamentals of the merger completely intact", says Coltec chairman John Guffey.
BFGoodrich has agreed to honour the marketing alliance under which Coltec has offered Allied-Signal wheels and brakes when making integrated landing system bids. In addition, BFGoodrich will become the landing gear supplier whenever AlliedSignal bids an integrated system.
The settlement with Crane provides "partnering opportunities" for the company's brake control and proximity sensor businesses when BFGoodrich makes integrated landing system bids.
AlliedSignal, itself in the process of a merger with Honeywell, welcomed the deal, which it says "protects our wheel and brakes business -by ensuring that AlliedSignal has long-term access to landing gear and can continue to serve as a landing systems integrator".
The merger creates a company with $6 billion in annual revenues - 65% from aerospace - making BFGoodrich the second largest US components and systems supplier after AlliedSignal. Products range from engine nacelles, through ice protection systems to maintenance and overhaul services.
"We will move quickly to realise the expected benefits of the merger, including annual cost synergies of $60 million," says BFGoodrich chairman David Burner. The merged company is based in Charlotte, North Carolina.
Source: Flight International
