CHARLOTTE, N.C., July 1, 2014 (GLOBE NEWSWIRE) -- Curtiss-Wright Corporation (NYSE:CW) today announced that it has sold its Benshaw, Inc. (Benshaw) business to Regal-Beloit Corporation (NYSE:RBC) for $50 million in cash.
"As part of our operating margin improvement initiatives outlined last December, this transaction aligns with our stated objective to divest non-core operations," said David C. Adams, President and CEO of Curtiss-Wright Corporation. "Furthermore, it enables us to focus on our core industrial markets, while also providing a better strategic fit for Benshaw's product portfolio. Overall, we remain committed to our long-term goals to generating significant free cash flow and operating margin expansion."
Curtiss-Wright acquired Benshaw in 2007. The business has grown into a market leader in the design, development and manufacture of custom electronic motor control and protection product solutions. Key to its success was the development of a medium voltage variable frequency drive, which has earned a solid reputation for rugged, reliable performance in a variety of demanding applications. Its customers include leading original equipment manufacturers (OEMs) and industrial customers within the commercial heating, ventilation and air conditioning (HVAC) market as well as the energy processing, petrochemicals, power generation and mining markets. Benshaw has estimated annual revenues of approximately $60M.
Moving forward, the business will be classified as discontinued operations. The Company will update its full-year 2014 guidance with its next quarterly earnings announcement, tentatively expected to be July 30, 2014.
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE:CW) is a global innovative company that delivers highly engineered, critical function products and services to the commercial, industrial, defense and energy markets. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing reliable solutions through trusted customer relationships. The company employs approximately 10,000 people worldwide. For more information, visit www.curtisswright.com.
Certain statements made in this release, including statements about Curtiss-Wright's execution on its strategy, and Benshaw's annual revenue, and product lines are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in competitive marketplace and/or customer requirements; a change in government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and subsequent reports filed with the Securities and Exchange Commission.
CONTACT: Jim Ryan
(973) 541-3766
