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Curtiss-Wright To Buy Dresser-Rand Government Business

Curtiss-Wright Corp. (CW) said that it agreed to acquire the assets that comprise the Dresser-Rand Government Business, a business unit of Siemens Government Technologies which is a wholly-owned U.S. subsidiary of Siemens AG in Germany, for $212.5 million in cash.

Curtiss-Wright noted that the acquired business will operate within Curtiss-Wright's Power segment, and is expected to be accretive to 2018 earnings per share and produce a free cash flow conversion in excess of 100%, excluding the effects of purchase accounting.

Dresser-Rand is a designer and manufacturer of mission-critical, high-speed rotating equipment solutions, including reciprocating compressors, steam turbines and steam system valves, supporting Nimitz-class and Ford-class aircraft carriers, Virginia-class and Columbia-class submarines, and most major U.S. Navy shipbuilding programs.

Dresser-Rand is the sole supplier of steam turbines and main engine guard valves on all aircraft carrier programs. Through its three service centers, it is also a leading provider of ship repair and maintenance for the U.S. Navy's Atlantic and Pacific fleets.

The Dresser-Rand government business, which employs approximately 150 people, is expected to generate sales of approximately $95 million in fiscal 2018, principally to the naval defense market, with additional sales to the power generation market.

The acquisition is expected to close in April 2018, subject to the receipt of regulatory approval and other closing conditions.

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