Canada’s Heroux-Devtek to Acquire CESA
(Source: Forecast International; issued Oct 03, 2017)
MADRID --- Heroux-Devtek Inc has reached an agreement to acquire Compania Espanola de Sistemas Aeronauticos SA (CESA), a subsidiary of Airbus SE, for a purchase price of €140 million enterprise value, subject to customary closing adjustments. Closing of the deal is expected to occur near the end of Heroux-Devtek's 2018 fiscal year, subject to certain approvals, including authorization by the Spanish Council of Ministers and the prior acquisition by Airbus of the stake of its minority partner in CESA.

"The acquisition of CESA marks a pivotal moment in Heroux-Devtek's international expansion. This transaction will allow us to increase our presence with Airbus, hence giving us better access to one of the largest aircraft manufacturers in the world. With this transaction, we are significantly increasing our presence in Europe, expanding our product and service offering into complementary activities, adding a significant intellectual property rights portfolio, as well as gaining important content on several key aircraft programs and customers.

“CESA has a strong management team with talented and committed employees and we are looking forward to having them join us. We are very excited to continue building a sustainable future for the corporation and creating value for our shareholders by proceeding with the largest acquisition in our history," said Gilles Labbe, President and Chief Executive Officer of Heroux-Devtek.

Headquartered in Madrid, Spain, CESA provides fluid mechanical and electromechanical systems for the aerospace industry. Its main product lines include landing gear, actuation, and hydraulic systems. It operates a 366,000-square-foot industrial complex in Madrid, as well as another facility in Seville. CESA has a workforce of approximately 340 employees.

"This transaction is in line with our strategic objective of expanding into activities that complement our core landing gear market. In addition to providing us with incremental landing gear business, CESA's world-class expertise in actuation and hydraulic systems will allow Heroux-Devtek to further enhance its reputation as a key supplier to leading global aerospace original aircraft manufacturers," said Real Belanger, Executive Vice-President of Business Development and Special Projects at Heroux-Devtek.
"For Airbus, the key criteria for the selection of the final candidate was based on their ability to provide a solid and strong industrial plan for CESA as well as an industrial strategic fit and an engagement towards the employees. This is both in the interest of CESA to continue its growth path as well as for Airbus, since CESA will remain a very important Tier 1 supplier for Airbus Defence and Space and the Airbus group in general. This acquisition fully fulfills these criteria and is a win-win for all parties involved, offering CESA the possibility to move up to a next level," said Fernando Alonso, Chief Executive Officer of Airbus Defence and Space.


prev next

Official reports See all