Curtiss-Wright Corp. (NYSE: CW) has reached a deal to acquire the Dresser-Rand brand and speed rotating equipment division from Siemens Government Technologies (SGT). The speed rotating manufacturer, acquired for approximately $212.5 million in cash, will join Curtiss-Wright’s power segment upon the deal closing.
The assets changing hands are comprised of the Dresser-Rand government business, the segment of Siemens AG subsidiary SGT based in Germany. Dresser-Rand designs a variety of “high-speed” rotating equipment, including reciprocating compressors, steam turbines and steam system valves. Dresser-Rand is the sole supplier of steam turbines and main engine guard valves on all aircraft carrier programs, and also supports most U.S. Navy shipbuilding programs. The target, using its three service centers, also provides ship repair and maintenance services for the U.S. Navy’s Atlantic and Pacific fleets.
"The acquisition of Dresser-Rand’s government business portfolio significantly expands our shipset content and increases our footprint on new U.S. Navy Nuclear vessels, establishes a prominent Curtiss-Wright presence at U.S. Navy shipyards, and provides an opportunity to grow our existing U.S. Navy aftermarket business,” states Curtiss-Wright CEO David Adams. “Further, this transaction exemplifies the ideal strategic and financial fit for Curtiss-Wright as it supports our long-term financial objectives for increased sales growth, margin expansion and strong free cash flow generation.”
Curtiss-Wright, the legacy company of Glenn Curtis and the Wright brothers, is an engineering company headquartered in Charlotte, North Carolina. The buyer also manufactures engineered products and services for the commercial, industrial, defense and energy markets. Curtiss-Wright will gain Dresser-Rand’s government business with approximately 150 employees.
The middle market has been swarming with deal activity across the industrials and manufacturing sectors. Related deals include: KKR & Co.’s (NYSE: KKR) agreement to buy industrial tools maker Hyperion; Circor International Inc. (NYSE: CIR) paying $855 million for the fluid handling business of Colfax Corp. (NYSE: CFX);Tech Air’s completed deal to buy two welding suppliers; Berkshire Hathaway Inc.’s purchase of Wilhelm Schulz GmbH; Liberty Hall Capital Partners’ acquisition of aerospace parts supplier ZTM Inc.; and LFM Capital’s investment in hydraulic clamps maker Vektek LLC.