Esterline Corporation is to acquire Leach Holding for approximately $145 million in cash.
The acquisition, the largest in Esterline’s corporate history, will add nearly 20%, or $120 million, to the company’s current annual revenue of approximately $600 million.
Esterline, a specialised manufacturing company that develops avionics and control systems, sensors and systems as well as advanced materials, generates 80% of its total revenue from aerospace and defence markets, while the rest is mostly derived from the medical segment.
For its part, Leach has three operations – two aerospace and one medical – that are located in seven manufacturing plants in North America, Europe and Asia. Between them, they employ more than 1,000 people producing a range of electromechanical relays, solid-state switching devices and power distribution assemblies for aerospace applications. Like Esterline, the majority of Leach’s products are targeted at the aerospace market with a smaller portion devoted to the medical field.
This is not the first purchase for Esterline this year. In June, the company acquired the Weston Group from Roxboro in an $88 million transaction. The four operations of the sensor manufacturer – UK-based Weston Aerospace, NY-based Norwich Aero Products, and Hampton, VA-based Pressure Systems – had an annual revenue of approximately $50 million and employ nearly 500 people.