Woodward, Hexcel to merge

Woodward, Hexcel to merge

Combined technology portfolio will focus on smarter, cleaner, and safer solutions for aerospace and industrial customers.

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January 14, 2020

Woodward Inc. and Hexcel Corp. officials announced Sunday Jan. 12, 2020, they are combining companies in an all-stock merger of equals. The companies, with expertise in advanced materials and control systems, will focus on products for aircraft aerodynamics, energy efficiency, improved safety, and reduced emissions and noise.

The combined company, to be named Woodward Hexcel, will be among the top independent aerospace and defense suppliers globally by revenue. It will have more than 16,000 employees, manufacturing operations in 14 countries on five continents, and a diversified customer base across multiple markets. Woodward Hexcel will be based in Fort Collins, Colorado, Woodward’s current headquarters.

The combined company is expected to generate net revenues of approximately $5.3 billion and earnings before interest, tax, depreciation, and amortization (EBITDA) of $1.1 billion.

Upon completion of the merger, expected to close in Q3 2020, existing Woodward shareholders will own approximately 55% and existing Hexcel shareholders will own approximately 45% of the combined company.

Nick Stanage, chairman, CEO, and, president of Hexcel will serve as CEO of the combined company. Tom Gendron, chairman, CEO, and president of Woodward will serve as executive chairman of the combined company. The combined company’s board of directors will consist of five directors from each company, including Gendron and Stanage.

Woodward is an independent designer, manufacturer, and service provider of fluid, combustion, electrical, and motion control systems and components for aerospace and industrial markets.

Hexcel Corp. is an advanced composites company that develops, manufactures, and markets lightweight, high-performance structural materials, including carbon fibers, specialty reinforcements, prepregs, and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered core, and composite structures, used in commercial aerospace, space, defense, and industrial applications.