Hexcel to acquire ARC Technologies for USD 160m

Hexcel Corp. (NYSE: HXL), a Connecticut-based composites company, has announced it has agreed to acquire Massachusetts-based ARC Technologies, Inc., a supplier of custom RF/EMI and microwave-absorbing composite materials for aerospace, military and industrial applications, the company said.

ARC Technologies is expected to generate about USD 50m in revenue in 2018. The agreed-upon purchase price is USD 160m, which represents a multiple of 11.9 times 2018 expected adjusted EBITDA. The transaction is expected to be accretive to Hexcel´s earnings in 2019 and is subject to customary commercial and regulatory conditions and approvals. It is expected to close early in 2019.

The acquisition strengthens Hexcel´s existing advanced materials portfolio in structural composites and thermoplastics and provides new opportunities for growth and market penetration.

Hexcel said this acquisition will combine two research and technology teams to further develop next-generation products for both commercial and military aerospace and defense applications. Both companies are committed to maintaining strong customer relationships focussed on innovative solutions so we will be well positioned to grow and enhance the business.

Hexcel Corp. develops, manufactures and markets lightweight, high-performance structural materials including carbon fibers, speciality reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered core and composite structures for use in commercial aerospace, space and defense and industrial applications.

ARC Technologies specializes in combining absorptive metallic filler compounds including carbon, iron and nickel-coated graphite with a proprietary blend of polymer resins to generate various matrix materials including structural composites and thermoplastics.