Defense company strives to beef up competitiveness via M&A deal
Hanwha Aerospace, a major affiliate of Hanwha Group, has funneled $300 million to gobble up EDAC Technologies, a U.S. aircraft engine component manufacturer.
Hanwha Aerospace recently said that it signed the deal to become the global No. 1 partner to the world’s leading engine manufacturers.
After making a preliminary bid for EDAC this April, Hanwha has carried out due diligence.
With a workforce of some 600 people, EDAC chalked up $150 million in sales last year. Included in the Connecticut-based outfit’s major customers are GE and Pratt & Whitney.
A Hanwha official said that the contract will enable the company to secure a foothold alongside leading global aircraft engine manufacturers including GE, and expand its product portfolio.
The acquisition is also expected to bring advanced capabilities in such segments as design, development, and technologies to Hanwha.
Hanwha Aerospace CEO Shin Hyun-woo expressed his hype on the deal.
“Based on the advanced technology we’ve acquired over the past 40 years and our product quality, we’ve recently entered into risk and revenue sharing partnerships, which have high barriers of entry in the global aircraft engine market,” he said.
“With our acquisition of EDAC, we will continue to expand our global presence to achieve our goal of becoming the world’s number one partner in the aircraft engine industry.”
Hanwha Aerospace is an aerospace industrial company, which was founded in 1977 as Samsung Precision, which later became Samsung Techwin.
In 2014, Samsung sold off Samsung Techwin to Hanwha, which changed the company’s name to Hanwha Techwin.
Two years later, Hanwha Techwin spun off three subsidiaries and changed its name to Hanwha Aerospace.