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Woodward-Hexcel merger expected to produce one of globe’s independent top aerospace, defense suppliers

Tom Gendron

Fort Collins-based Woodward Inc., which designs and manufactures control systems for aerospace and industry, said it has agreed to an all-stock merger with Connecticut-based Hexcel Corp., a manufacturer of composite materials for the aerospace, defense and industrial markets.

The two said in a statement Sunday that the combined company, to be called Woodward Hexcel, will be among the top independent aerospace and defense suppliers globally with anticipated net revenues of about $5.3 billion and operating earnings of $1.1 billion. The company will be headquartered in Fort Collins and will have more than 16,000 employees in 14 countries on five continents, Woodward and Hexcel officials said.

The combined company’s free cash flow is expected to be about $1 billion annually and growing, company officials said.

“This merger accelerates our technology investments and creates greater benefits and growth opportunities than either company could have achieved alone,” said Tom Gendron,Woodward chairman, CEO and president.

Nick Stanage, Hexcel chairman, CEO and president, said the future of flight and energy efficiency will be defined by lower ownership costs, reduced emissions and enhanced safety.

Nick Stanage

“Woodward’s innovative control systems and Hexcel’s advanced lightweight materials are designed to drive improved reliability, efficiency, and emissions,” Stanage said.

Existing Woodward shareholders will own approximately 55% and Hexcel shareholders will own approximately 45% of the combined company on a fully diluted basis when the merger is completed, according to the companies.

The merger is expected to be completed by around the middle of the year.

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