Curtiss-Wright (NYSE: CW) has agreed to buy Siemens’ Dresser-Rand government business through a $212.5 million cash transaction.
Curtiss-Wright said Tuesday it will operate Dresser-Rand as part of its power segment and expects to close the acquisition in April, subject to regulatory approval and other customary closing conditions.
“The acquisition of Dresser-Rand’s government business portfolio significantly expands our shipset content and increases our footprint on new U.S. Navy Nuclear vessels, establishes a prominent Curtiss-Wright presence at U.S. Navy shipyards, and provides an opportunity to grow our existing U.S. Navy aftermarket business,†said David Adams, Curtiss-Wright chairman and CEO.
Dresser-Rand is a Siemens Government Technologies business unit that designs and produces steam turbines, reciprocating compressors, engine guard valves and other rotating equipment for the Navy’s shipbuilding programs such as Ford-class and Nimitz-class aircraft carriers as well as Columbia– and Virginia-class submarines.
The business also manufactures and supplies Terry steam turbine feedwater pumps to the commercial nuclear power sector.
Dresser-Rand, which has approximately 150 employees, runs three service centers that provide ship maintenance and repair services to the Navy’s Pacific and Atlantic fleets and is expected to record approximately $95 million in fiscal 2018 sales.
Curtiss-Wright said it expects the deal to be accretive to earnings per share in 2018 and generate free cash flow conversion that exceeds 100 percent.
Siemens acquired Dresser-Rand in 2014 for approximately $7.6 billion cash.
