RBC Bearings, an international manufacturer of highly-engineered precision plain, roller and ball bearings for the industrial, defence and aerospace industries, entered into a definitive agreement to acquire the Sargent Aerospace & Defense business (Sargent) of Dover Corporation for USD 500M, to be financed through a combination of cash on hand and senior debt. The transaction is expected to close in the second calendar quarter of 2015.
With headquarters in Tucson, Arizona, Sargent is a specialist in precision-engineered products, solutions and repairs for aircraft airframes and engines, rotorcraft, submarines and land vehicles. The company manufactures, sells, and services hydraulic valves and actuators, specialty bearings, specialty fasteners, seal rings & alignment joints, and precision components under leading brands including Kahr Bearing, Airtomic, Sonic Industries, Sargent Controls and Sargent Aerospace & Defense. Annual sales are approximately USD 195M and the company has over 750 employees in six facilities in three countries.
RBC Bearings management estimates earnings accretion between USD 0.25 to USD 0.35 per diluted share for the first twelve months of operations as a combined company, annual run-rate synergies of approximately USD 7.5M achieved over a five-year period and approximately USD 78M in tax benefits based on a NPV basis.