Barco finalizes sale of its Defense & Aerospace division to Esterline
Kortrijk, Belgium, 2 February 2015 – Barco, a global leader in professional visualization solutions, reports the finalizing of the sale of its Defense & Aerospace division to US-based Esterline Corporation (NYSE: ESL) on January 31, 2015. As such, all Barco’s activities in the Defense & Aerospace markets have now been transferred to Esterline. For Barco, this is another step in its long-term strategy to streamline its business portfolio and to strengthen its core activities.
Following the initial agreement reached in September 2014, the sale of Barco’s Defense & Aerospace division to US-based Esterline has now been finalized. All customary closing conditions have been confirmed and closed successfully.
As a result all employees of Barco’s Defense & Aerospace division have joined the Esterline Group and all Barco’s activities in the Defense & Aerospace markets have been transferred as of 1 February 2015. This transaction also includes the complete products and solutions portfolio and the open order book. In return, Esterline has transferred the entire amount of the transaction, 150 million euro, to Barco.
A sharpened focus
Barco decided to divest its Defense & Aerospace activities in order to sharpen its focus on its three core activities: Entertainment, Enterprise and Healthcare. With high ambitions in these markets, including an extension of the customer base and the penetration into larger volume markets, Barco is aligning its organizational structure with the new situation. The proceeds of the transaction will fund growth initiatives in these core divisions.
Esterline is a global leader in Defense & Aerospace and its offering is fully complementary with Barco’s former Defense & Aerospace offering. Joining forces with Esterline will enable Barco’s D&A division to realize its full business potential. Furthermore, this transaction will expand Esterline’s foothold in Europe and strengthen its commercial position in the region.
Esterline Corporation is a leading worldwide supplier to the aerospace and defense industry specializing in three core areas: Avionics & Controls, Sensors & Systems, and Advanced Materials. Operations within the Avionics & Controls segment focus on high-technology electronics products for military and commercial aircraft and land- and sea-based military vehicles, secure communications equipment, systems and components, specialized medical equipment, and other industrial applications. The Sensors & Systems segment includes operations that produce high-precision temperature and pressure sensors, electrical power distribution equipment, harsh-environment connectors and other related systems principally for aerospace and defense customers. Operations within the Advanced Materials segment focus on technologies including high-temperature resistant materials and components used for a wide range of military and commercial aerospace purposes and combustible ordnance and electronic warfare countermeasure products.
Barco, a global technology company, designs and develops visualization products for a variety of selected professional markets. Barco has its own facilities for Sales & Marketing, Customer Support, R&D and Manufacturing in Europe, North America and Asia Pacific. Barco (NYSE Euronext Brussels: BAR) is active in more than 90 countries with 4,000 employees worldwide. Barco posted sales of 1.158 billion euro in 2013.
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