Howmet Aerospace announces the acquisition of Consolidated Aerospace Manufacturing, LLC (CAM) from Stanley Black & Decker for $1.8 billion. This strategic move aims to strengthen Howmet Aerospace's aerospace fastening solutions and broaden its market presence.
The acquisition enhances Howmet Aerospace's portfolio with high-tech aerospace solutions, laying the groundwork for increased competitiveness and innovation in the aerospace and defense sector.
With an estimated revenue range of $485 to $495 million in FY 2026, CAM's financial performance is expected to contribute significantly to Howmet Aerospace's top-line growth and overall financial strength.
Acquisition Valued at $1.8 Billion
The acquisition of CAM for $1.8 billion bolsters Howmet Aerospace's position in the aerospace industry, specifically in the fastening solutions segment, adding depth to its product offerings and capabilities.
Expected Revenue of CAM
CAM is projected to generate approximately $485-495 million in revenue during FY 2026, signaling a substantial revenue stream for Howmet Aerospace post-acquisition.
Synergies and Tax Benefit
Anticipated synergies and tax benefits are expected to translate into an adjusted EBITDA transaction multiple of around 13x in FY 2026, indicating the potential for enhanced profitability and operational efficiency following the acquisition.
Strategic Importance
CAM's renowned brands and advanced engineering expertise complement Howmet Aerospace's existing business, enabling the company to better address customer needs and strengthen its competitive position in the aerospace and defense markets.
- The acquisition of CAM deepens Howmet Aerospace's exposure to critical aerospace and defense platforms, expanding its market reach and customer base within the industry.
- By offering a broader range of fastening solutions through the acquisition, Howmet Aerospace is poised to create additional value for shareholders and enhance its market competitiveness, paving the way for sustained growth and profitability.
Howmet Aerospace's acquisition of CAM represents a strategic initiative aimed at augmenting its fastener portfolio and improving its ability to cater to the evolving demands of aerospace and defense customers, solidifying its position as a key player in the industry.