Hexcel To Buy ARC Technologies For $160 Mln - Quick Facts

(RTTNews) - Hexcel Corp. (HXL) said Friday that it has agreed to acquire ARC Technologies, Inc., a supplier of custom RF / EMI and microwave absorbing composite materials for military, aerospace and industrial applications for an agreed-upon purchase price of $160 million.

Hexcel noted that the acquisition will strengthen its existing advanced materials portfolio in structural composites and thermoplastics as well as provide new opportunities for growth and market penetration.

Founded in 1988, ARC Technologies is a privately-owned manufacturer with about 170 employees working at two locations in Amesbury, Massachusetts.

The company has a wide range of capabilities for producing RF / EMI and microwave absorbing materials and specializes in combining absorptive metallic filler compounds - including carbon, iron and nickel-coated graphite - with a proprietary blend of polymer resins to generate various matrix materials including structural composites and thermoplastics.

Hexcel noted that ARC Technologies is expected to generate about $50 million in revenue in 2018.

The transaction, anticipated to be accretive to Hexcel's earnings in 2019, is expected to close early in 2019.