Rockwell Collins has entered into a definitive agreement to acquire cabin interior specialist B/E Aerospace for $6.4bn in a deal which will grow its interests in the cabin interiors market.
The acquisition, reported by The Wall Street Journal over the weekend, is comprised of approximately $6.4bn in cash and stock, plus the assumption of $1.9bn in net debt.
The Cedar Rapids, Iowa-headquartered Rockwell Collins said the transaction will combine its capabilities which include flight deck avionics, cabin electronics and simulation and training with B/E Aerospace’s range of cabin interior products.
These offerings consist of seating, lighting and oxygen systems and modular galley and lavatory systems for commercial aircraft and business jets.
Kelly Ortberg, chairman, president and CEO of Rockwell Collins, said the deal will provide the firm with “a strong flow of aftermarket retrofit opportunities”, with the combined portfolios positioning it to integrate cabin products, smart network technologies and connectivity solutions to enhance the operating of aircraft.