ALL >> Investing---Finance >> View Article
Abney Associates Advise On Arinc Buyout
Total Articles: 25
Arinc Inc. the aviation information management company has been purchased from its Carlyle Group owners, Rockwell Collins Inc. The aerospace manufacturer has paid $1.39 billion for Arinc in their continuing efforts to expand their footprint in the aviation sector. The deal is the largest this year in the North American aviation sector eclipsing, Precision Castparts Corp’s $600 million purchase of Permaswage SAS earlier this year .
“This has been a long expected move by Rockwell as they have been hinting for some time of their desire to diversify and gain further access within the civilian market. Arinc was simply too good an opportunity to pass up and the acquisition price reflects this. Carlyle group took the same position back in 2007 when they bought Arinc from American Airlines and it’s just as deserving today,” explained James Carter, Senior Vice President of Mergers and Acquisitions at Abney Associates.
The purchase comes as Rockwell Collins finds itself increasing its business in commercial aviation as it draws down on Government contracts. The company, which expects to accrue sales of $4.65 billion this year, has wanted to further diversify within the aviation sector for some time and Arinc with its estimated revenues of $600 million was a sound strategic investment for acquisition. With the addition of Arinc to the group, Rockwell Collins business is almost split between government and civilian markets, 46% and 54% respectfully.
With the purchase of Arinc under new CEO Kelly Ortberg, Rockwell Collins continues what has been a well performing year with the company’s share value exceeding the S&P 500’s 19% gains with a rise in value of 28%. This performance has much to do with Rockwell becoming the supplier of cockpit instrumentation to Boeing for use on all of its 737 fleet, after replacing Honeywell International. The company is also a major supplier for electronics for use in Boeing’s 777 and 787 aircraft.
“With Government orders down this year most of the big players in Aviation have faced some difficult decisions to maintain their bottom lines, Rockwell came up with very elegant solution with the purchase of Arinc and its civilian market only revenue steam. As an investment vehicle, Rockwell makes a lot of sense, as their value is not based on the ability to score just individual contracts as required, but rather by maintaining long-term income. This makes them far more stable an investment than many of their peers and is why we’re observing them closely on our client’s behalf,” added James Carter, Senior Vice President of Mergers and Acquisitions at Abney Associates.
Abney Associates are a Hong Kong based company that provides a range of financial services to individual clients, portfolio companies, corporate investors and entrepreneurs who wish to take unbiased financial advice.
Abney Associates are primarily a team of financial specialists who pride themselves on having a high level of expertise and vast experience for diligently monitoring any positive or negative developments to companies currently listed on exchanges globally, especially those that may affect client investment interests. This is done in order to ensure the financial advice given is factually correct and delivered in an effective way.
Investing / Finance Articles1. Download Free Forex Robot To Trade Like A Pro In The Forex Market
2. Trade12 Is The Platform That Will Give You A Free Lifestyle
3. A Guide To Proper Retirement Planning Servives In Richmond
Author: Danny McCarty is the author of this article
4. Why Invoice Invoice Factoring Financing Is Better Than Bank Overdraft Credit?
Author: Stephen Perl
5. Apoyos Para Negocios En 2017
6. How Do You Master Mind Your Long Term Loans Without Collateral?
Author: Jenny Elmore
7. Algotrade Helps You Make Consistent Profits In Forex Market
8. The Guide To Choosing The Best Stock Trading Advisory Service
Author: Dharmesh Patel
9. What Should An Executor Of A Will Do To Get Grant Of Probate?
Author: Probate a Will
10. Trade12 Provides A Perfect Educational Experience For New Traders!
11. Home Loan Rate Comparison – Why Is It Important?
Author: Kimberly Ash
12. The Benefits Of Getting A Reliable Mortgage Broker Harrogate
Author: Brian Miller
13. All You Need To Know About Co – Signing A Loan
Author: Neha Sharma
14. What Are The Insurance Policies To Opt For In Your Early 30's?
Author: Neha Sharma
15. Multi – Currency Card: How To Pay Less For Foreign Currency
Author: Neha Sharma