Hexcel, Woodward Aim to Form Aerospace & Defense Tech Company via Merger Deal

Jeff Brody

Woodward, a supplier of aircraft and industrial parts, has agreed to merge with composites manufacturing company Hexcel in an all-stock transaction that would create a $6.4B integrated systems provider to the aerospace and defense sectors.

Hexcel said Sunday that its chairman, president and CEO Nick Stanage will lead the combined company, which will be called Woodward Hexcel and headquartered in Fort Collins, Colo.

Tom Gendron — chairman, president and CEO of Woodward — will serve as executive chairman of the new entity until its first anniversary, then he will transition to a new role as non-executive chairman.

Both parties expect to wrap up the transaction by the third quarter and invest $250M in research and development projects through the combination to harness the potential emerging technology to improve energy efficiency, propulsion and aerodynamic systems for aircraft.

The new firm will have approximately 16K workers and manufacturing operations across five continents.

Shareholders in Woodward will own 55 percent of the combined entity and Hexcel shareholders will hold the remaining 45 percent.

Goldman Sachs serves as Hexcel’s financial adviser and Wachtell, Lipton, Rosen & Katz acts as its legal counsel in the deal. J.P. Morgan Securities and Wilson Sonsini Goodrich & Rosati is the financial adviser and legal counsel of Woodward, respectively.

Check Also


Washington Headquarters Services Issues RFP for Acquisition Directorate Support Recompete

The Washington Headquarters Services has kicked off solicitations for the recompete of a multiple-award, indefinite-delivery/indefinite-quantity contract for analytic and technical support services to the WHS' acquisition directorate.

Liz Porter Health Group President Leidos

Leidos Promotes Liz Porter to Health Group President

Liz Porter, acting president of Leidos’ (NYSE: LDOS) health group since March, has been promoted to the position on a permanent basis. She will report directly to Roger Krone, chairman and CEO of Leidos and a 2020 Wash100 Award recipient.