The major news of the weekend is continued consolidation in the supply chain, with Woodward acquiring Hexcel. In a share merger, Hexcel shareholders are expected to obtain 0.625 shares in Woodward once the transaction is completed in this no cash transaction.
Woodward Hexcel will become a major player in the aviation supply chain and the new company will focus on creating more efficient aircraft that will reduce emissions. Hexcel’s expertise in lightweight composites will fit well with Woodward’s activities in aircraft and turbine controls. Opportunities to expand capabilities such as flight controls and actuation to entire subsystems built with Hexcel materials can provide future synergies and revenue growth.
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