Hexcel Corp. has entered into a definitive agreement to acquire ARC Technologies Inc. for $160 million.
ARC Technologies is a leading supplier of custom electromagnetic interference (EMI), radio frequency (RF) interference, and microwave absorbing composite materials for military, aerospace and industrial applications.
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.
ARC is expected to generate about $50 million in revenue in 2018. The agreed-upon purchase price represents a multiple of 11.9 times 2018 expected adjusted EBITDA. The transaction is expected to be accretive to Hexcel’s earnings in 2019 and is subject to customary commercial and regulatory conditions and approvals. It is expected to close in early 2019.