Abney Associates Advise on Arinc Buyout
Abney Associates advising investors of opportunities in Rockwell Collins after their buyout of Arinc Incorporated sets the record for the sector.
183 Queen's Road East (I-Newswire) October 8, 2013 - Arinc Inc. the aviation information management company has been purchased from its Carlyle Group owners, Rockwell Collins Inc. The aerospace manufacturer has paid $1.39 billion for Arinc in their continuing efforts to expand their footprint in the aviation sector. The deal is the largest this year in the North American aviation sector eclipsing, Precision Castparts Corp's $600 million purchase of Permaswage SAS earlier this year .
"This has been a long expected move by Rockwell as they have been hinting for some time of their desire to diversify and gain further access within the civilian market. Arinc was simply too good an opportunity to pass up and the acquisition price reflects this. Carlyle group took the same position back in 2007 when they bought Arinc from American Airlines and it's just as deserving today," explained James Carter, Senior Vice President of Mergers and Acquisitions at Abney Associates.
The purchase comes as Rockwell Collins finds itself increasing its business in commercial aviation as it draws down on Government contracts. The company, which expects to accrue sales of $4.65 billion this year, has wanted to further diversify within the aviation sector for some time and Arinc with its estimated revenues of $600 million was a sound strategic investment for acquisition. With the addition of Arinc to the group, Rockwell Collins business is almost split between government and civilian markets, 46% and 54% respectfully.
With the purchase of Arinc under new CEO Kelly Ortberg, Rockwell Collins continues what has been a well performing year with the company's share value exceeding the S&P 500's 19% gains with a rise in value of 28%. This performance has much to do with Rockwell becoming the supplier of cockpit instrumentation to Boeing for use on all of its 737 fleet, after replacing Honeywell International. The company is also a major supplier for electronics for use in Boeing's 777 and 787 aircraft.
"With Government orders down this year most of the big players in Aviation have faced some difficult decisions to maintain their bottom lines, Rockwell came up with very elegant solution with the purchase of Arinc and its civilian market only revenue steam. As an investment vehicle, Rockwell makes a lot of sense, as their value is not based on the ability to score just individual contracts as required, but rather by maintaining long-term income. This makes them far more stable an investment than many of their peers and is why we're observing them closely on our client's behalf," added James Carter, Senior Vice President of Mergers and Acquisitions at Abney Associates.
Abney Associates are a Hong Kong based company that provides a range of financial services to individual clients, portfolio companies, corporate investors and entrepreneurs who wish to take unbiased financial advice.
Abney Associates are primarily a team of financial specialists who pride themselves on having a high level of expertise and vast experience for diligently monitoring any positive or negative developments to companies currently listed on exchanges globally, especially those that may affect client investment interests. This is done in order to ensure the financial advice given is factually correct and delivered in an effective way.
About Abney Associates
49/F Hopewell Centre
183 Queen's Road East
Phone : +852 5808 1704
Tags:james carter abney associates hong kong abney associates reviews Senior Vice President of Mergers and Acq Kelly Ortberg abneyassociates.
Published On:October 8, 2013
Print Release:Print Release
If you have questions regarding information in this press release contact the company listed above. I-Newswire.com is a press release service and not the author of this press release.The information that is on or available through this site is for informational purposes only and speaks only as of the particular date or dates of that information. As some companies and PR Agencies submit their press releases once per week,month or quarter, make sure to check the official company website for accurate release dates as our site displays the I-Newswire.com press release distribution date only.We do not guarantee the accuracy or completeness of information on or available through this site, and we are not responsible for or omissions in that information or for actions taken in reliance on that information.
Can Debt Consolidation Loans for Bad Credit Get Americans Out of Debt?
New Investing Book Details Strategies for a Secure Financial Future Anyone Can Use
Christmas Gift Registries Changing Traditional Gifting Trends in Australia
Property Management Company Opens Las Vegas Location
Best Foreign Exchange Center in Hyderabad