Albany International to acquire Advanced Composites Business

Albany International Corp. (NYSE: AIN) has agreed to acquire Harris Corporation´s composite aero-structures division for total consideration of USD210 million including the assumption of a USD23 million capital lease, the company said.

Harris had acquired the division through its 2015 acquisition of Exelis Inc.

The division is a leading supplier of advanced composite products primarily for airframe applications. It has significant positions on three major growth platforms: Lockheed´s Joint Strike Fighter (JSF), Boeing´s 787, and Sikorsky´s CH-53K. It also supplies the vacuum waste tanks for most of Boeing´s 7-Series aircraft, and components of the airframe of a Lockheed Martin family of air-to-surface missiles.

The acquisition is projected to be slightly accretive to Albany earnings in 2016, with projected 2016 sales in the USD80 million to USD90 million range and Adjusted EBITDA in the USD13 million to USD15 million range.

Albany will use existing cash on hand and its revolving credit facility to finance the transaction. In connection with the transaction, Albany expects to create additional borrowing capacity by increasing its existing revolving credit facility from USD400 million to USD550 million prior to the closing of the transaction; terms of the new credit facility are expected to be similar to the terms of the current facility.

The transaction, which is conditional on regulatory and other customary conditions, is expected to be completed by the end of the first quarter or early second quarter of 2016.

Albany International is a global advanced textiles and materials processing company, with two core businesses. It is headquartered in Rochester, New Hampshire, operates 19 plants in 10 countries, and employs 3,900 people worldwide.

Harris is a leading technology innovator, solving our customers´ toughest mission-critical challenges by providing solutions that connect, inform and protect.