Curtiss-Wright to acquire Ultra Energy in $200m cash deal

Curtiss-Wright Corporation (NYSE: CW) has finalized an agreement to acquire Ultra Nuclear Limited and Weed Instrument Co., Inc. (collectively known as Ultra Energy), a division of Ultra Electronics, for $200 million. This acquisition positions Curtiss-Wright to significantly enhance its offerings in the nuclear energy sector.

Key Details of the Acquisition

– Deal Price: $200 million in cash.

– Annual Sales: Ultra Energy reported sales of approximately $65 million in 2023.

– Financial Impact: The acquisition is expected to be accretive to Curtiss-Wright’s earnings per share in the first full year, post-purchase accounting adjustments.

– Cash Flow: Anticipated free cash flow conversion rate exceeding 100%.

– Closing Date: Expected in Q3 2024, pending UK regulatory approvals.

– Operational Integration: Ultra Energy will be integrated into Curtiss-Wright’s Naval & Power segment.

Strategic Expansion and Portfolio Synergy

Lynn M. Bamford, Chair and Chief Executive Officer of Curtiss-Wright, highlighted the strategic importance of the acquisition. “The acquisition of Ultra Energy significantly increases the breadth of Curtiss-Wright’s global portfolio with highly complementary, critical measurement and control solutions,” said Bamford. This move aims to modernize existing nuclear power plants and aid in the design of new, advanced power plants, including small modular reactors across the U.S. and Europe.

Ultra Energy is poised to enhance Curtiss-Wright’s naval defense portfolio and expand its presence with major global designers of advanced nuclear reactors. The acquisition is seen as a strategic fit, aligning with Curtiss-Wright’s long-term growth objectives and robust financial goals, particularly in generating profitable growth and strong free cash flow.

Background and Impact of Ultra Energy

Originating in the mid-1950s with a focus on neutron monitoring and expanding in the late 1960s to include temperature and pressure sensor manufacturing, Ultra Energy has established a solid foundation in the nuclear sector. Its product lineup is crucial for reactor power measurement, plant safety, and the continuous monitoring of plant conditions.

Employing around 300 individuals, Ultra Energy maintains major operations in Wimborne, UK, and Round Rock, TX. This acquisition not only enhances Curtiss-Wright’s product offerings but also fortifies its workforce and operational capabilities.

This acquisition reflects Curtiss-Wright’s strategic directive to deepen its technological capabilities and market reach in the nuclear power sector, promising significant advancements in both commercial and defense applications.