Woodward, Inc. (NASDAQ: WWD) and Hexcel Corp. (NYSE: HXL) have announced an agreement to combine in an all-stock merger of equals to create a premier integrated systems provider serving the aerospace and industrial sectors, the companies said.
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. For each company´s respective fiscal year 2019 on a pro forma basis, the combined company is expected to generate net revenues of approximately USD 5.3 billion and EBITDA of USD 1.1 billion, or a 21% EBITDA margin.
Goldman Sachs and Co. LLC is acting as exclusive financial advisor to Hexcel, and Wachtell, Lipton, Rosen and Katz is serving as legal counsel. JP Morgan Securities LLC is acting as exclusive financial advisor to Woodward, and Wilson Sonsini Goodrich and Rosati is serving as legal counsel.
Through the combined scale and strong cash flow profile, the company will be better positioned to accelerate innovation in aerodynamics and propulsion efficiencies and support evolving customer needs.