Aircraft parts suppliers Hexcel Corp and Woodward Inc abandoned their planned $6.4 billion all-stock merger, the first major deal to fall through in an industry battered by coronavirus-led lockdowns around the world.
In a joint statement, Tom Gendron, Chairman, Chief Executive Officer and President of Woodward, and Nick Stanage, Chairman, Chief Executive Officer and President of Hexcel, said, “While we both believed from the outset, and continue to believe, in the benefits of a combined Woodward and Hexcel, we mutually concluded after careful consideration that given the significant uncertainty in the market, it would not be prudent to continue to pursue the combination and integration of our companies in a merger of equals. Although we are disappointed with this outcome, we are confident this is the right decision for our customers, our shareholders, and our employees as it allows each of us to dedicate our focus and resources toward ensuring Woodward and Hexcel each remain strong and closely connected with our customers and supply chains during these unparalleled times. We continue to be hopeful that our two companies will find opportunities to collaborate on next-generation platforms in the future for the benefit of our customers.”
The companies agreed to the deal in January against the backdrop of Boeing Co, Woodward’s biggest client and Hexcel’s second-largest customer, struggling with the grounding and later production halt of the 737 MAX jet.
According to a Reuters report, owing to the ongoing COVID-19 crisis in the airline industry, the deal did not make sense to either company. The companies agreed they did not want to pursue any claim against the other for walking away, the sources added.
While Woodward’s and Hexcel’s businesses are complimentary and would have given the combined company scale, the companies did not believe they could integrate them successfully during the crisis, Reuters reported from a sources.
The combined company would have been one of the world’s biggest aerospace and defense suppliers, with the capacity to generate combined free cash flow of about $1 billion annually.
Boeing has advanced its manned-unmanned teaming (MUM-T) technology using a digital F/A-18 Super Hornet and MQ-25 Stingray. The testing shows…
Malaysia’s Lumut Naval Shipyard Sdn Bhd (LUNAS) inked a Memorandum of Understanding (MoU) with Indonesian shipbuilder PT PAL Indonesia at…
Prime Minister of Malaysia, Datuk Seri Anwar Ibrahim, attended the unveiling of MALVUS SENSE SDN BHD’s CW-25H, a significant development…
KNDS France which is the main provider of artillery systems for the Royal Malaysian Army and a strategic industrial partner…
The upcoming 10th edition of Indo Defence 2024 Expo & Forum, renowned as one of the foremost international defence industry…
Malaysian firm MILDEF International Technologies unveiled its new Tarantula, 4x4 High Mobility Armoured Vehicle (HMAV) at the ongoing DSA. Also…
Nurol Makina and Nadicorp (Badanbas) are showing their NMS 4X4 armoured vehicle in Royal Malaysian Army camouflage for the first…
South African defence firm Denel is presenting its portfolio of guided weapons and land defence systems at the show. “Denel…
The Malaysian armed forces are accelerating their procurements of modern military equipment in their quest to transform their combat capability.…
PT Dirgantara Indonesia (PTDI) is currently participating in the Defense Services Asia (DSA) 2024 defence exhibition, scheduled from 6th to…
The French defence company and a leader in ground mobility solutions, Arquus is showcasing its proven range of defence and…
Tell me about Cendana Auto, and the products that you're featuring here? Cendana Auto is 100% a local Malaysian company,…
Thailand’s defence land system company, Chaiseri, is bringing three of its First Win (FW) series armoured vehicles to the show.…
Turkish weapons company Roketsan is showcasing its broad range of missile equipment at the ongoing show including its new generation…
Malaysia will buy 10 AN/AAQ-33 Sniper Advanced Targeting Pods from the United States. The proposed sale will improve Malaysia’s capability…
As far as high-profile visits go, this one was right up there on the list. After speaking at the opening…
Malaysia’s Weststar Defence Industries has partnered with International Armored Group (IAG) to display the IAG Guardian Armoured Personnel Carrier (APC)…
Singapore Minister for Defence Dr Ng Eng Hen’s presence at the ongoing show and his meeting with Malaysia's Prime Minister…
Emirates will add another 43 A380s and 28 Boeing 777 aircraft to its extensive cabin retrofit programme lifting the total…
Lilium, developer of the first all-electric vertical take-off and landing (eVTOL) jet is partnering with advanced air mobility (AAM) operator…
Lockheed Martin Skunk Works recently joined the U.S. Air Force Test Pilot School and other government and industry partners in…
Airbus has finalised the acquisition of U.S.-based Aerovel and its unmanned aerial system (UAS), Flexrotor, in a move to strengthen…
The Turkish Aerospace Industries (TAI) is highlighting its 5th Generation Jet Fighter KAAN, as well as its T625 Gokbey Helicopter…
Sarsilmaz is bringing its range of weapons to the ongoing show. The company is displaying its defence products from small…
Roketsan is showcasing its well-earned reputation in the development of groundbreaking technologies in rocket, missile and weapon systems at this…
An insight into possible weapon options for the Royal Malaysian Air Force’s (RMAF) new Korean Aerospace Industries (KAI) FA-50 light…
Countries across regions are increasingly staying away from Russian arms since due to the fear of inviting U.S. sanctions, opening…
Fresh after its success in deploying 5G services in India, Vietnam’s Military Industry and Telecoms Group (Viettel) is at the…
Saab is displaying its training solutions for modern training needs at the ongoing DSA. The company is also showcasing its…
Ranhill Defence & Technology a Malaysian provider of defence solutions has partnered with Thai manufacturer of defence vehicles Chaiseri to…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2024 GBP all rights reserved.