HCL Technologies (HCL), has entered into an agreement to acquire Butler America Aerospace, LLC (Butler Aerospace).Butler Aerospace is a wholly owned subsidiary of Butler America LLC. The proposed acquisition will exclude the staffing business of Butler America Inc.
Butler Aerospace serves customers primarily in the Aerospace and Defense industries in the US, to whom it provides Engineering & Design services in the areas of Mechanical and Structural Design, Electrical Design, Tool design and aftermarket engineering services.
With over 900 highly skilled engineers and 7 design centers in the US, Butler Aerospace has a marquee list of clients in the Aerospace & Defense industries and works with OEMs and their Suppliers. The acquisition will bolster HCL’s capabilities in this space and access to clients with large R&D spends.
The consideration for the proposed transaction is USD 85.0 million to be paid in cash. Butler Aerospace had revenues of $85.4 million for the year ending Dec 31, 2015 at EBIT of 12.2%. The transaction when consummated is likely to be EPS accretive.
The acquisition is subject to regulatory approvals including CFIUS approval in the US, along with other customary closing conditions. It is expected to be completed by December 31, 2016.