Albany International Corp. (NYSE:AIN) announced today that it has
completed the acquisition of Harris Corporation’s composite
aerostructures division, which was first announced on February 29, 2016.
Albany International President & CEO Joe Morone said, “All of us are
delighted that the transaction has now closed and excited to welcome our
newest members of the Albany family. As I said in our earlier
announcement, this transaction essentially doubles the growth potential
of AEC this decade. And because of the resulting breadth and depth of
technology, capabilities, and experience, the new AEC becomes a major
presence in the aerospace composites industry, with the potential for
significantly more growth next decade.”
The acquisition is projected to be slightly accretive to Albany earnings
in 2016, with projected 2016 sales in the $80 million to $90 million
range and Adjusted EBITDA in the $13 million to $15 million range.
About Albany International Corp.
Albany International is a
global advanced textiles and materials processing company, with two core
businesses. Machine Clothing is the world’s leading producer of
custom-designed fabrics and belts essential to production in the paper,
nonwovens, and other process industries. Albany Engineered Composites is
a rapidly growing supplier of highly engineered composite parts for the
aerospace industry. Albany International is headquartered in Rochester,
New Hampshire, operates 22 plants in 10 countries, employs 4,400 people
worldwide, and is listed on the New York Stock Exchange (Symbol AIN).
Additional information about the Company and its products and services
can be found at www.albint.com.
This press release contains certain items, such as earnings before
interest, taxes, depreciation and amortization (EBITDA) and Adjusted
EBITDA that could be considered ‘non-GAAP’ financial measures under SEC
rules. We think such items provide useful information to investors
regarding the Company’s operational performance. The Company calculates
EBITDA by removing the following from Net income: Interest expense net,
Income tax expense, Depreciation and amortization, and Income or loss
from Discontinued Operations. Adjusted EBITDA is calculated by: adding
to EBITDA costs associated with restructuring and pension settlement
charges; adding (or subtracting) revaluation losses (or gains);
subtracting (or adding) gains (or losses) from the sale of buildings or
investments; subtracting insurance recovery gains; and subtracting
Income attributable to the noncontrolling interest in Albany Safran
Composites (ASC). Expectations of EBITDA and Adjusted EBITDA are
made based on estimates of ranges of amounts in future periods and
cannot be reconciled to the nearest GAAP measure.
This press release may contain statements, estimates, or projections
that constitute “forward-looking statements” as defined under U.S.
federal securities laws. Generally, the words “believe,” “expect,”
“intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “look
for,” “could,” “potential” and similar expressions identify
forward-looking statements, which generally are not historical in
nature. Forward-looking statements are subject to certain risks and
uncertainties (including, without limitation, those set forth in the
Company’s most recent Annual Report on Form 10-K or Quarterly Report on
Form 10-Q) that could cause actual results to differ materially
from the Company’s historical experience and our present expectations or
projections.
Forward-looking statements in this release include, without
limitation, expectations in 2016 and in future periods of sales,
earnings, and Adjusted EBITDA related to the Company’s composites
acquisition and the Company as a whole. Furthermore, a change in any one
or more of the foregoing factors could have a material effect on the
Company’s financial results in any period. Such statements are based on
current expectations, and the Company undertakes no obligation to
publicly update or revise any forward-looking statements.
Statements expressing management’s assessments of the growth
potential of its businesses, or referring to earlier assessments of such
potential, are not intended as forecasts of actual future growth, and
should not be relied on as such. While management believes such
assessments to have a reasonable basis, such assessments are, by their
nature, inherently uncertain. This release and earlier releases set
forth a number of assumptions regarding these assessments, including
historical results, independent forecasts regarding the markets in which
these businesses operate, and the timing and magnitude of orders for our
customers’ products. Historical growth rates are no guarantee of future
growth, and such independent forecasts and assumptions could prove
materially incorrect, in some cases.
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