Héroux-Devtek to acquire Airbus subsidiary CESA for €140m


Canada-based aerospace solution provider Héroux-Devtek has agreed to purchase Airbus subsidiary Compañia Española de Sistemas Aeronauticos (CESA) for around €140m.

The value of the transaction is subject to customary closing adjustments and is expected to be financed via a C$50m (€34m) seven-year unsecured subordinated term loan from Fonds de solidarité FTQ.

The proposed deal is also expected to receive funds from the assumption of debt amounting to around €29m, as well as the company's available cash and various other sources.

It is slated to be completed by the end of Héroux-Devtek’s 2018 fiscal year and is subject to certain approvals, including the authorisation of the Spanish Council of Ministers and Airbus' prior acquisition of stake in its minority partner of CESA.

Héroux-Devtek CEO and president Gilles Labbé said: “The acquisition of CESA marks a pivotal moment in Héroux-Devtek's international expansion.

"This transaction will allow us to increase our presence with Airbus, hence giving us better access to one of the largest aircraft manufacturers in the world."

“This transaction will allow us to increase our presence with Airbus, hence giving us better access to one of the largest aircraft manufacturers in the world.

“With this transaction, we are significantly increasing our presence in Europe, expanding our product and service offering into complementary activities, adding a significant intellectual property rights portfolio, as well as gaining important content on several key aircraft programs and customers.”

CESA is based in Madrid, Spain, and currently provides fluid mechanical and electromechanical systems for the aerospace industry.

The company’s main product lines include landing gear, actuation and hydraulic systems.

CESA operates a 366,000ft² industrial complex in Madrid and another facility in Seville, Spain. It also provides integrated product and service offerings such as design and development engineering, certification, manufacturing, assembly and fleet support to various customers and aircraft programmes.

The company employs roughly 340 personnel.