DAVIDSON, N.C. - Curtiss-Wright Corporation (NYSE: NYSE:CW), a provider of high-tech engineering products and services, has announced its agreement to purchase Ultra Nuclear Limited and Weed Instrument Co., Inc., collectively known as Ultra Energy, from Ultra Electronics for $200 million in cash. The acquisition is aimed at enhancing Curtiss-Wright's offerings in the commercial nuclear and defense industries.
Ultra Energy, which reported sales of about $65 million in 2023, is recognized for its design and manufacture of safety systems and sensors for nuclear power plants.
The deal is expected to be beneficial to Curtiss-Wright's adjusted diluted earnings per share in the first year, excluding initial purchase accounting costs, and is anticipated to provide a strong free cash flow conversion rate exceeding 100%. The transaction is slated for completion in the third quarter of 2024, pending regulatory approval in the UK, and will be integrated into Curtiss-Wright's Naval & Power segment.
Lynn M. Bamford, Chair and CEO of Curtiss-Wright, highlighted the strategic importance of the acquisition, noting that Ultra Energy's product line complements Curtiss-Wright's existing portfolio and supports the modernization and development of new nuclear power plants, including small modular reactors. Bamford also emphasized the potential for expanding Curtiss-Wright's footprint in the UK and European markets.
Ultra Energy, which employs around 300 individuals, operates primarily out of Wimborne, UK, and Round Rock, TX. The company has a history dating back to the 1950s and 1960s, with expertise in neutron monitoring and the manufacturing of temperature and pressure sensors.
Curtiss-Wright, with a workforce of about 8,600, serves the Aerospace & Defense markets and provides technologies for Commercial Power, Process, and Industrial sectors. The company, based in Davidson, North Carolina, prides itself on innovation and customer relationships, continuing the legacy of aviation pioneers Glenn Curtiss and the Wright brothers.
The forward-looking statements in the press release reflect the company's expectations for future opportunities following the acquisition, including the integration of Ultra Energy's technology and operations into Curtiss-Wright's Naval & Power segment. However, these statements are subject to risks and uncertainties that could affect actual outcomes.
This acquisition announcement is based on a press release statement from Curtiss-Wright Corporation.
InvestingPro Insights
Curtiss-Wright Corporation (NYSE: CW) has recently made a strategic move to enhance its position in the commercial nuclear and defense industries with the acquisition of Ultra Energy. As the company aims to integrate these new assets into its Naval & Power segment, it is important to consider the company’s financial health and market performance.
According to InvestingPro data, Curtiss-Wright boasts a robust market capitalization of $10.83 billion, illustrating the company's significant presence in the industry. The company's P/E ratio, as of Q1 2024, stands at 28.97, indicating investor confidence in its earnings potential. Additionally, Curtiss-Wright has demonstrated a strong revenue growth of 11.39% over the last twelve months as of Q1 2024, showcasing its ability to expand its financial base amid challenging market conditions.
An InvestingPro Tip highlights that Curtiss-Wright has raised its dividend for 7 consecutive years, reflecting a commitment to returning value to shareholders. Moreover, the company has maintained dividend payments for an impressive 51 consecutive years. This consistent performance may reassure investors looking for stable dividend-paying stocks.
Another InvestingPro Tip points out that analysts have revised their earnings expectations downwards for the upcoming period. This information is critical for investors to consider as they assess the potential impact of the Ultra Energy acquisition on Curtiss-Wright's financial outlook.
For those interested in a deeper analysis, InvestingPro offers additional tips to guide investment decisions, including insights on the company's debt levels, trading patterns, and profitability predictions. Readers can access these valuable tips and more by visiting https://www.investing.com/pro/CW. Plus, by using the coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of information to inform their investment strategies.
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