Aircraft, spacecraft and military supplier Ducommun said March 21 it bought BLR Aerospace the day before for the latter’s proprietary aerodynamic products, used in tail systems, propellers and winglets.
The acquisition price was $115 million, according to a regulatory filing. The deal is expected to close in the second quarter.
The move follows a strategy outlined in December to boost Ducommun revenue from engineered products and aftermarket work. Acquisitions were expected.
“BLR is an absolute industry leader in providing engineered products and aftermarket services to rotorcraft, fixed-wing business aviation OEM customers and fleet operators worldwide and their team will only strengthen our position,” Ducommun Chairman, CEO and President Steve Oswald said. “The other exciting aspect of BLR is that they are contributing to the advancement of both the commercial aviation and defense industries through innovation and that is in line with our company’s vision.”
RBC Capital Markets analyst Ken Herbert said it was a good move for Ducommun. “We view the acquisition as a positive for the company and expect it to increase the amount of engineered products and aftermarket revenues for Ducommun’s overall portfolio (aftermarket is well over 50% of BLR revenue),” he wrote his clients. “With an incremental tilt toward the aftermarket, the acquisition should be beneficial for margins, and we expect it to be accretive overall.”
