TRW has agreed a $1 billion cash acquisition of BDM International, a US systems integration house with major defence interests, which will boost the group's existing fast-growing space and defence division.
The enlarged division will have sales of $4-5 billion, representing more than 40% of TRW, the rest of which is in the automotive sector. Chairman Joseph Gorman says that the move is a significant step in achieving a long-term goal of doubling the group's overall sales.
BDM, which employs around 9,000 worldwide, has been averaging 24% annual growth over the past five years. It was acquired in 1990 by The Carlyle Group investment company, after a brief spell as part of Ford Aerospace, and then went public in 1994. Carlyle still owns 26% of the company, but will sell the stake to TRW.
Source: Flight International