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| Draegerwerk AG of Luebeck, Germany, announced today that it has executed a formal agreement to sell Draeger Aerospace GmbH, its aviation and defense company, to Cobham plc of Wimborne, Dorset in the UK. Subject to final approvals of the respective Boards and of regulatory agencies, the acquisition is expected to be formally completed within the first quarter of 2003. The agreed consideration is €28.4 million payable in cash of which €3 million is deferred for three years. Cobham plc is an established aerospace and defense supplier, with a strong reputation worldwide for specialist systems for aircraft and weapon platforms.
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| Over the past decade, consolidations in the aerospace industry have seen the creation of a small number of global system providers. As this transformation has developed, there has been increasing pressure on the industry supply chain to focus on performance and on the capability to provide systems solutions. Each of the major customers has progressively reduced its supply base, leaving room only for the best performers in the market.
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| Theo Draeger, President of Draegerwerk AG, said: "We faced two alternatives: Either to grow our aerospace business or to accept the acquisition offer from Cobham plc. Aerospace growth would have required significant investments in the form of acquisitions in a business partly outside of our core competencies and representing only 2 % of Draeger’s turnover. So it was a clear decision to favor our core medical and safety businesses. While I am sad to see Draeger Aerospace depart from the Draeger family, I nevertheless believe that under Cobham the company will have the opportunity to better focus its energies on developing its potential in the aerospace field. Meanwhile Draegerwerk, in turn, will now increase concentration on its core safety and medical businesses."
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| Draeger Aerospace has a reputation, developed in over 100 years of operation, for innovation and quality in the design, development and manufacture of aviation oxygen systems. This capability dovetails perfectly with the products and systems of Carleton Technologies Inc, with whom Draeger Aerospace has been working closely for several years. The combined team has had marked success in winning new oxygen systems business on the Airbus A340 and A380, and on the Boeing Business Jet project. Cobham plc plans to operate Draeger Aerospace with its existing workforce of about 180 employees and facilities in Luebeck under the overall control of the Carleton group of companies. This will provide even better opportunities for Carleton and Draeger Aerospace to develop their world leadership in commercial aviation oxygen systems. The group will also extend its products and technologies to satisfying the requirements for aviation oxygen systems for military aircraft.
The present annual turnover of Draeger Aerospace amounts to €26 million. The Cobham group’s sales in 2001 were approximately €1,110.0 million.
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| Allan Cook, Chief Executive of Cobham, said: "We are excited about the prospects for combining the complementary capabilities of Carleton and Draeger Aerospace, opening up new opportunities to supply system solutions to our customers throughout the world. The acquisition of Draeger Aerospace provides us with a new base of operations in Europe, and I am confident that we can leverage the capabilities to great effect."
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(c) Drägerwerk AG & Co. KGaA, 2007 |
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