UPDATE 1-B/E Aerospace to buy two aircraft parts makers for $470 mln

Mon Jun 2, 2014 11:19am EDT

(Adds details, background, share movement)

June 2 (Reuters) - B/E Aerospace Inc, a maker of products for aircraft interiors, said it would buy two companies for about $470 million to boost its offerings to manufacturers of commercial airliners, helicopters and business jets.

The company said on Monday it would acquire Wisconsin-based Emteq Inc, a provider of aircraft lighting systems, and F+E Fischer + Entwicklungen GmbH & Co KG, a German manufacturer of helicopter seats.

B/E Aerospace had mentioned these deals in April, when it reported its first-quarter results.

Analysts said they don't think the deals would complicate the strategic review the company is undergoing.

B/E Aerospace in May made a surprise announcement of reviewing strategic options, including a sale, merger or a spinoff of some businesses.

"We don't think completion of these transactions should have a major impact on where the stock will be over the next 6-12 months given the focus is likely to be on how its exploration of strategic options plays out," RBC Capital Markets analyst Robert Stallard said in a note on Monday.

B/E Aerospace said the two companies had a combined revenue of about $150 million in the 12 months ended March 31 and that the deals would add to its earnings in 2015 and 2016.

The company will take a one-time charge of about $10 million related to the deals in the second quarter ending Aug. 31.

The Emteq deal will close in June, while the Fischer transaction will close in the third quarter, B/E Aerospace said.

The company's shares were down about 1 percent at $95.86 on the Nasdaq on Monday. (Reporting by Ankit Ajmera in Bangalore; Editing by Kirti Pandey and Saumyadeb Chakrabarty)

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