Curtiss-Wright acquires Keronite Group Limited

Curtiss-Wright Corporation today announced that it has completed the acquisition of the stock of Keronite Group Limited (Keronite) for $35 million in cash. Keronite is a leading provider of Plasma Electrolytic Oxidation (PEO) surface treatment applications offering corrosion protection, wear resistance, thermal protection and electrical insulation for the defense, commercial aerospace and industrial vehicle markets, and also in semiconductor manufacturing.

Keronite is expected to generate sales of approximately $9 million in 2022 and is expected to be neutral to Curtiss-Wright's adjusted diluted earnings per share in its first full year of ownership, excluding first year purchase accounting costs, and produce a strong free cash flow conversion rate of approximately 100%. The acquired business will operate within Curtiss-Wright's Aerospace & Industrial segment.

“The acquisition of Keronite increases the breadth of our surface treatment services portfolio with unique and complementary coatings technologies recognized for their critical performance in severe service environments,” said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation. “The combination of this business with Curtiss-Wright's long-standing customer relationships and global sales channels provides strong alignment to the strategic priorities as highlighted at our 2021 investor day and is expected to yield significant opportunities for long-term profitable growth.”

Keronite's PEO surface treatment process utilizes a bath-based method of producing ceramic layers on light alloys such as aluminum, magnesium and titanium to enhance their inherent performance characteristics. As the surface is oxidized, it incorporates an electrolyte thereby giving the coating specialized characteristics that are tailored to the specific application. Through Keronite's process, lightweight metals are afforded the wear and performance properties of high-weight materials such as carbide or steel in a more environmentally-friendly manner, and are well-suited to support demanding applications such as aerospace or electric vehicle programs.

Keronite, which was founded in 2000 and employs nearly 45 people, is based in Cambridge, UK, and also maintains operations in Greenwood, Indiana.