DAVIDSON, N.C. - Curtiss-Wright Corporation (NYSE: NYSE:CW), a global provider of highly engineered products and services, has completed the acquisition of WSC, Inc., a prominent simulation technology firm, for $34 million in cash. This strategic move, announced today, is set to enhance Curtiss-Wright's offerings in the nuclear power and process plant sectors.
WSC, known for its advanced simulation platforms, including the proprietary 3KEYMASTER™ system, has established itself as a key player in the design, commissioning, and operational support of commercial nuclear power generation.
With an installed base of over 225 plant simulators globally, WSC's technology is vital for operator training mandated by the Nuclear Regulatory Commission (NRC).
The acquisition is expected to be accretive to Curtiss-Wright's adjusted diluted earnings per share in the first full year post-purchase, excluding initial accounting costs. WSC, which reported sales of roughly $15 million in 2023, will join Curtiss-Wright's Naval & Power segment and is anticipated to deliver a strong free cash flow conversion rate exceeding 100%.
Lynn M. Bamford, Chair and CEO of Curtiss-Wright, highlighted the acquisition's alignment with the company's long-term growth and financial objectives.
Bamford noted that WSC's simulation and digital twin capabilities would complement Curtiss-Wright's existing digital safety systems and advanced condition monitoring technology, offering significant benefits to customers involved in advanced reactor development and power or process plant optimization.
WSC's simulation tools have also been instrumental in the U.S. Navy's nuclear design for aircraft carriers and submarines, as well as in the education sector for training on nuclear plant operations.
The company's recent contract with TerraPower for the Natrium sodium fast reactor and its involvement in other Advanced Small Modular Reactor (ASMR) platforms underscore its industry relevance.
Founded in 1995 and employing approximately 45 people, WSC maintains operations in Frederick, MD. Curtiss-Wright, with a workforce of about 8,600, is headquartered in Davidson, North Carolina, and serves Aerospace & Defense markets as well as Commercial Power, Process, and Industrial sectors.
This acquisition is based on a press release statement and is subject to the usual risks and uncertainties associated with such transactions.
InvestingPro Insights
Curtiss-Wright Corporation's recent acquisition of WSC, Inc. is a strategic addition that not only broadens its technology portfolio but also strengthens its position in the nuclear power and process plant sectors.
As investors and industry watchers evaluate this move, it's essential to consider the financial health and performance metrics of Curtiss-Wright to understand the potential impact of this acquisition.
According to the latest data from InvestingPro, Curtiss-Wright has a market capitalization of $9.76 billion and has demonstrated strong financial performance with a revenue growth of 11.28% over the last twelve months as of Q4 2023. With a solid gross profit margin of 37.51%, the company's ability to maintain profitability is clear.
An InvestingPro Tip worth noting is that Curtiss-Wright has a perfect Piotroski Score of 9, indicating robust financial health and suggesting that the company is well-positioned to integrate WSC's operations effectively. Moreover, the company has raised its dividend for 7 consecutive years, which speaks to its commitment to delivering shareholder value and its confidence in sustained financial performance.
For investors seeking more in-depth analysis and additional InvestingPro Tips, Curtiss-Wright currently has 15 more tips available on InvestingPro, which can be accessed at https://www.investing.com/pro/CW. These tips could provide further insights into the company's valuation, stock performance, and future profitability.
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