Having successfully consolidated the once-fragmented cabin interior industry, B/E Aerospace has set its sights on the fasteners sector with an agreement to buy leading independent aftermarket distributor M&M Aerospace Hardware for $177 million.
Wellington, Florida-based B/E says the acquisition will almost double the company's market. It estimates worldwide annual aerospace fasteners sales at $2.2 billion, "almost equal to the cabin interior products market".
About 70% of fastener sales are in the aftermarket, and B/E plans to expand Florida-based M&M's sales to the company's existing aftermarket customer base, "more rapidly than M&M could do on its own".
B/E also expects to achieve savings on its $15 million-a-year fastener bill.
The purchase price consists of $152 million in cash plus $25 million in stock. The transaction is expected to close in September.
Source: Flight International