HCL Buys US-Based Butler Aerospace For $ 85Mn
21 October 2016
The Noida-headquartered HCL Technologies will acquire Butler America Aerospace LLC (Butler Aerospace), a provider of engineering, design services and aftermarket engineering services to US aerospace and defence customers, for $ 85 million (about Rs 568 crores) in cash.
With the acquisition of Butler Aerospace, a wholly owned subsidiary of Butler America LLC, HCL aims to strengthen its position in the aerospace and defence engineering services space, which is expected to get a fillip in India as global companies eye mega defence deals & set up shops in the country.
Butler Aerospace serves customers primarily in the aerospace and defence industries in the US, to whom it provides engineering & design services in the areas of mechanical and structural design, electrical design, tool design and aftermarket engineering services.
With over 900 highly skilled engineers and 7 design centres in the US, Butler Aerospace has a marquee list of clients in the aerospace & defence industries and works with OEMs and their suppliers. The acquisition will bolster HCL’s capabilities in this space and access to clients with large R&D spends.
Butler Aerospace had revenues of $85.4 million for the year ending December 31, 2015 at EBIT of 12.2 percent. The acquisition is subject to regulatory approvals including CFIUS approval in the US, along with other customary closing conditions. It is expected to be completed by December 31, 2016.
Source : business-standard.com