Rockwell Collins Acquires Maker of Commercial Flight Systems

In August of 2013, Rockwell Collins agreed to acquire Arinc, a manufacturer of commercial flight systems, for $1.39 billion. The announced deal came out a time when the US government is make drastic budget cuts in defense spending, a move which has affected many of the largest US defense contractors. The acquisition is intended to subsidize the losses that Rockwell Collins was taking from budget cuts by moving its business away from government work and into commercial work. The move will also greatly augment the company’s aviation information management offerings. By the year 2014, commercial business is expected to total 54% of Rockwell Collin’s total business.

Financially, Rockwell Collins is acquiring Arinc from Carlyle Group for $1.39 billion, a company which generated $600 million in revenue in 2013. However, from a strategic standpoint, there are many intangibles at play, one of which is the acceleration of their information management solutions development. They are currently working on expanding their portfolio of information-enabled products and systems, and the acquisition of ground-based networks from Arinc will greatly assist in the process. The deal will be move Rockwell Collins away and decrease its dependency on the aircraft business as well as government business. Rockwell Collins is a US-based international avionics and information technology systems company that supports government agencies and aircraft manufacturers. Since their inception in 1933, they have since grown to become a publicly-traded S&P 500 Component company that generates in excess of $4.61 billion in annual revenue.

Rockwell Collins employs over 20,000 people over its three divisions: Commercial Systems, Government Systems, International and Service Solutions, and Information Management Solutions. ASAP Semiconductor, through our proprietary website ASAP Fasteners, specializes in the distribution of aerospace products around the world for both commercial, civil, and military applications. We work with Rockwell Collins to ensure we carry the most highly-demanded spare parts for your aircraft requirements. Browse our capabilities on www.asap-fasteners.com and contact us today at sales@asap-fasteners.com for a quote.

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1. henry anderson
2. Posted on November 19, 2014
aviation manufacturing

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