B/E Aerospace to Acquire UFC Aerospace Corp.; Increases 2012 Financial Guidance

B/E Aerospace, the world’s leading manufacturer of aircraft cabin interior products and the world’s leading distributor of aerospace fasteners and consumables, announced today that it has signed a definitive agreement to acquire UFC Aerospace Corp. (UFC), an innovative provider of complex supply chain management and inventory logistics solutions to aerospace original equipment manufacturers.

UFC currently distributes over 150,000 SKUs (stock keeping units) including fasteners, chemicals, paints, sealants, tooling, and duct/bent tubing assemblies to over 1,000 customers. UFC leverages its long-term relationships with key customers to create differentiated supply chain solutions.

“The acquisition of UFC substantially expands our capability to offer creative and differentiated supply chain solutions, value-added inventory logistics services such as 3PL and 4PL programs, and customized kitting solutions, as well as further expanding our broad consumables product offering. This acquisition supports our commitment to provide the best and broadest portfolio of aerospace consumables products and services to our customers,” said Amin J. Khoury, Chairman and Chief Executive Officer of B/E Aerospace. “Our future revenue growth will be fueled by key positions on critical customer platforms, our ability to continue to respond to customer demand for same day service, and our ability to respond to aerospace customer trends toward outsourcing more and more key elements of the supply chain through complex logistic solutions. B/E Aerospace is uniquely positioned for all of these.”
Mr. Khoury concluded, “The acquisition purchase price is approximately $400 million in cash, representing a multiple of approximately 9.5 times adjusted 2011 EBITDA, plus the estimated net present value of the tax benefits from tax deductible goodwill. The acquisition is expected to close before the end of the first quarter.”

As a result of the expected accretive nature of this transaction, B/E Aerospace announced that it is increasing its 2012 earnings per share guidance by approximately $0.10 per diluted share to approximately $2.75 per diluted share.