Goodrich Corporation has announced that it has entered into a definitive agreement to acquire TRW Inc.’s Aeronautical Systems businesses for $1.5 billion in cash.
The transaction, which has been approved by the boards of directors of Goodrich and TRW, is expected to be permanently financed by a combination of debt and equity-linked securities.
Under the terms of the agreement, Goodrich will acquire businesses with strong positions in commercial and military aerospace, including flight controls, cargo systems, engine control systems, power and utility systems and missile actuation.
According to a statement, the newly acquired businesses significantly enhance Goodrich’s global position with 54% of product sales in Europe and approximately 6,200 employees in 22 facilities in nine countries, including manufacturing and service operations in the United Kingdom, France, Germany, Canada, the United States and several Asian and Pacific countries.
The transaction is subject to approval by US and European regulatory agencies and is expected to be completed in the fourth quarter of 2002.