Industry Insight: Innovation in Global Aerospace
Boeing suppliers agree to US$6.4 billion merger
February 1st 2020
Composites technology company, Hexcel, and aircraft and industrial parts manufacturer, Woodward Inc., have merged into a 55/45 integrated systems provider for the aerospace and industrial sectors to be named Woodward Hexcel. Read More »
Existing Woodward shareholders would own 55% of the merged entity and Hexcel shareholders 45%.
Reuters reported in January that Boeing was Hexcel’s second biggest customer and accounted for 25% of its annual sales they included the manufacture of composite materials used on MAX airframes and also the engine suppliers for the type.
Boeing provides 15% of Woodward’s business and is the manufacturer’s biggest customer. Its product portfolio includes the thrust reverser actuation system for the MAX.
After the merger is sealed, the Fort Collins, Colorado company forecasts free cash flow of US$1 billion a year.
