Quebec aerospace company to focus on landing gear operations
LONGUEUIL Que.: Héroux-Devtek Inc. is selling its aerostructure and industrial products operations to Precision Castparts Corp. for $300 million in cash.
The Longueuil Que. aerospace manufacturer expects the sale to net approximately $230 million after taxes and expenses.
The company said it will focus on the growth of its core landing gear operations.
Precision Castparts, diversified global manufacturer of complex metal components and products based in Portland, Ore., will acquire in the transaction Héroux-Devtek’s Dorval, Que., Querétaro, Mexico and Arlington, Tex. aerostructure manufacturing sites, plus the Cincinnati industrial products manufacturing sites.
Héroux-Devtek said these assets generated sales of approximately $130 million for the fiscal year that ended March 31.
The transaction is expected to close in the second quarter.
The company, which will retain all of its landing gear design engineering and manufacturing capabilities, said it’s evaluating “various alternatives” for the proceeds, including “a significant distribution to shareholders” and debt repayment.
Héroux-Devtek, with revenues of more than $250 million, employs more than 1,000 people in Canada and the US.
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