Héroux-Devtek Inc., a leading international manufacturer of aerospace products, is pleased to announce that it has successfully completed the acquisition of Compañia Española de Sistemas Aeronáuticos, S.A. ("CESA"), a subsidiary of Airbus SE for a purchase price of 137 million euros (approximately $206 million) enterprise value, including CESA's net outstanding debt of 23 million euros (approximately $35 million), subject to customary closing adjustments.

"We are very pleased to have completed this acquisition which is the largest in our history and represents an important milestone in our international expansion," said Héroux-Devtek President & CEO, Gilles Labbé. "CESA will allow us to increase our market presence in Europe, gain important content on several key aircraft programs and leverage customer relationships with Airbus and other key customers. We are honoured to welcome the CESA team to the Héroux-Devtek family."

"The acquisition also expands Héroux-Devtek's product and service offering into the actuation and hydraulic systems and adds new technology, such as electromechanical actuation, to our portfolio. Our product mix will also evolve with 42% of revenues being generated from proprietary products," continued Mr. Labbé. "Partnered with the complementary addition of Beaver's expertise in ball screws, we see great opportunity to grow the business in the actuation market, which is significantly larger than the landing gear market," he concluded.

"We look forward to continuing our close business relationship with CESA, which remains a key supplier for Airbus," said Fernando Alonso, Head of Military Aircraft at Airbus Defence and Space. "CESA and its employees are set to benefit from the new strategic owner's strong industrial plan over the coming years."

The transaction was funded through a combination of a $50 million seven-year unsecured subordinated term loan provided by Fonds de solidarité FTQ, the Corporation's revolving credit facility and available cash on hand. In connection with this acquisition, the Corporation's credit facility was amended, increasing the borrowing limit to $250 million from $200 million.

Headquartered in Madrid, Spain, CESA is a leading European provider of fluid mechanical and electromechanical systems for the aerospace industry. Its main product lines include actuation and hydraulic systems as well as landing gear products. CESA provides an integrated product and service offering comprised of design and development engineering, certification, manufacturing, assembly and fleet support to a broad range of customers and aircraft programs. It operates a 366,000 square foot state-of-the-art industrial complex in Madrid, as well as another facility in Seville. CESA employs a skilled workforce of approximately 300 employees.