In a move to advance it’s stake in the Cabin Management System industry, Goodrich Corporation took possession of Aerospace Industry leader DeCrane Aerospace’s CMS sector. The transaction closed seamlessly for a sum of $280 million dollars, a value equal to less than 8 times the estimated profits of the company for the 2010 fiscal year.
850 employees over six production facilities in the United States were affected by this acquisition, coming under the umbrella of the Goodrich Corporation, and serving major business jet manufacturers including Cessna, Gulfstream, Cessna, and Bombadier. It represented a solid opportunity for Goodrich to increase it’s market positioning in the aircraft interior systems, and came at a strategically important time in the businesses growth cycle.
Goodrich Interior Systems has been producing a broad selection of important cabin interior products, including custom cabinetry, molded composites, inflight entertainment systems, aircraft seating, and more. This represented just a small portion of it’s carefully diversified product line, each venue selected for it’s strategic importance in servicing the aerospace industries most pressing and profitable needs.
DeCrane Aerospace has long been known for it’s dedication to quality, and it is telling that they sought to preserve their reputation for top of the line products by off-loading this line of production to another company. Profitability aside, Goodrich has held a superior place in the minds of industry professionals as a producer of trusted and reliable CMS components, and the resulting growth in the company has shown it was a wise move on the part of both companies.
Word from Goodrich officials was held out when these new holdings became part of the businesses Nacelles and Interior Systems segment. Time has shown that their estimates of value and quality CMS equipment coming out of this acquisition were accurate, with Goodrich increasing the already high quality of systems being produced by DeCrane Aerospace. As with most of Goodrich’s movements within the industry in the form of growth and asset claiming, these resources have only served to increase investor profitability and confidence in their work.
This bold move came at an intensive growth oriented time for the Goodrich Corporation, who during this same year had correctly identified Turkey as a quickly expanding region ripe for development. Earlier this same year they had formed a joint venture to provide MRO services with Turkish Technic, a venture that became known as the Goodrich Turkish Technic Service Center. This, combined with the industry cunning shown by Goodrich officials, worked to take advantage of the recovering commercial jet business sector and benefit company and shareholders alike.
A recent analysis of Goodrich Corporations holdings reveals that they continue to move forward with bold moves and innovative thinking. A fact clearly represented by the most recent fiscal reports. The Third Quarter of 2014 reveals a $2.04 growth per share, and net income for its shareholders of $1.9 billion, and growth of over 30% in both areas. Goodrich continues to be a wise investment for those looking to invest in the aerospace industry, and its growth hasn’t slowed a bit since.