BF Goodrich And Coltec To Merge, Maximizing Performance-Materials Expertise
The BF Goodrich Co. (Richfield, OH), and Coltec Industries (Charlotte, NC), announced on Nov. 23, 1998, that they will merge to create a company with important franchises in performance materials, aerospace, and engineered industrial products. Based on BF Goodrich's closing price on Friday, Nov. 20, 1998, the transaction is valued at approximately $2.2 billion, including the assumption of Coltec debt.
The companies expect to achieve minimum annual cost savings of approximately $60 million by 2001, with significant savings beginning in 1999. Together, the companies have estimated 1998 pro forma revenues of approximately $5.5 billion.
Under the terms of the agreement, Current BF Goodrich shareholders will own approximately two-thirds, and Coltec shareholders one-third, of the combined company. Coltec shareholders will receive 0.56 shares of BF Goodrich common stock for each Coltec common share. The transaction is expected to be completed as early as spring 1999 and is subject to approval by the shareholders of both companies and applicable regulatory authorities.
"With Coltec's high-margin engineered industrial products business, we are adding an important third leg that balances our aerospace and performance-materials portfolio and enhances our excellent prospects for continued growth," says David Burner, chairman and CEO of BF Goodrich. "Our performance-materials businesses enjoy strong positions in the global markets they serve and we remain committed to building these businesses."
Headquarters of The BF Goodrich Company will relocate to Charlotte, NC. This move will affect the company's Richfield, OH office, which has approximately 130 employees, and the company's aerospace headquarters in Montrose, OH, near Akron, OH, which employs about 40 people. An undetermined number of these employees will be offered the opportunity to relocate to Charlotte. BF Goodrich's performance-materials segment will continue to be headquartered in Brecksville, OH. More than 3,000 Goodrich employees will remain based in Ohio.
David Price will be president and CEO of the company's combined performance-materials segment and Marshall Larsen will be president and CEO of the combined aerospace segment. Both Larsen and Price were executive vice presidents of BF Goodrich. John Guffey, Coltec's chairman and CEO, and two other Coltec directors will join the BF Goodrich Board, increasing its size from 12 to 15 members.
Coltec Industries is a leading producer of aerospace and industrial products. BF Goodrich manufactures performance materials that are used in thousands of consumer and industrial products and provides aircraft systems and services that are sold to customers worldwide.
For more information, call 704-423-7010.