Curtiss-Wright (NYSE: CW) has closed its $212.5 million cash acquisition of the Dresser-Rand government business from Siemens in a move to expand aftermarket support for the U.S. Navy and footprint on the service branch’s nuclear ships.
Dresser-Rand will mainly focus its sales efforts on the naval defense market and will now operate as part of Curtis-Wright’s power segment following the completion of the deal originally announced in February, the North Carolina-based technology company said Tuesday.
The business was part of Siemens Government Technologies — the industrial conglomerate’s ‘ U.S. federal subsidiary — and produces steam turbines, engine guard valves, reciprocating compressors and other rotating equipment for the Navy’s shipbuilding programs.
It also provides ship maintenance and repair services to the military branch’s Pacific and Atlantic fleets through its three service centers.
Curtiss-Wright expects the transaction to be accretive to earnings per share in 2018 and generate free cash flow conversion that exceeds 100 percent.
The acquisition came nearly four years after Siemens purchased Dresser-Rand for approximately $7.6 billion cash.