ARC Technologies, Inc., a leading designer and manufacturer of custom RF / EMI and microwave absorbing composite materials for defense, aerospace and industrial applications, has been acquired by Hexcel Corporation (NYSE:HXL). The acquisition strengthens Hexcel’s existing advanced materials portfolio in structural composites and thermoplastics and provides new opportunities for growth and market penetration.
Founded in 1988 and headquartered in Amesbury, Massachusetts, ARC Technologies has a wide range of capabilities for producing RF / EMI and microwave absorbing materials and specializes in combining absorptive metallic filler compounds, including carbon, iron and nickel-coated graphite, with a proprietary blend of polymer resins to generate various matrix materials including structural composites and thermoplastics.
Hexcel Corporation is a leading advanced composites company. It develops, manufactures and markets lightweight, high-performance structural materials including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered core and composite structures for use in commercial aerospace, space and defense and industrial applications.
ARC Technologies Founder & CEO Daniel P. Healey commented, “This acquisition represents a major step in strengthening our capabilities in RF absorbing materials, thermoplastic products and specialty composites. Hexcel has a well-known industry reputation for producing high-performance structural materials, so the acquisition will improve our ability to offer the next generation of aerospace materials and advanced composites to our customers. Knowing Hexcel’s corporate credibility and culture, I’m confident that the acquisition will benefit both companies and all of our employees.”
Hexcel Chairman, CEO and President Nick Stanage said, “ARC Technologies is a leader in materials science with talented people and a culture that is a strong fit with ours. This acquisition will combine two great research and technology teams to further develop next-generation products for both commercial and military aerospace and defense applications. Both companies are committed to maintaining strong customer relationships focused on innovative solutions so we will be well positioned to grow and enhance the business.”
ARC Technologies was purchased in a $160 million cash transaction representing 11.9 times the 2018 expected adjusted EBITDA. The company is expected to generate revenues of $50 million in 2018. For more information about this transaction, please contact PB&W Managing Directors Nick Berry and Luke Korta at firstname.lastname@example.org and email@example.com.