DAVIDSON, N.C.--(BUSINESS WIRE)--Curtiss-Wright Corporation (NYSE: CW) today announced that it has completed the acquisition of WSC, Inc. for approximately $34 million in cash. WSC is a leading provider of state-of-the-art simulation technology that supports the design, commissioning, and reliable operation of commercial nuclear power generation and process plants worldwide with an installed base of over 225 plant simulators.
WSC generated sales of approximately $15 million in 2023 and is expected to be accretive to Curtiss-Wright's adjusted diluted earnings per share in its first full year of ownership, excluding first year purchase accounting costs, and produce a strong free cash flow conversion rate in excess of 100%. The acquired business will operate within Curtiss-Wright's Naval & Power segment.
“The acquisition of WSC increases the breadth of Curtiss-Wright’s portfolio of advanced commercial nuclear technologies utilized in the modernization of existing power plants and design of new power plants such as Advanced Small Modular Reactors,” said Lynn M. Bamford, Chair and Chief Executive Officer. “The combination of WSC's solutions, including their simulation and digital twin capabilities, with Curtiss-Wright's digital safety systems and advanced condition monitoring technology, will benefit our customers developing advanced reactors as well as those optimizing any power or process plant designs. The acquisition also supports Curtiss-Wright's financial objectives for long-term profitable growth and strong free cash flow generation.”
WSC’s proprietary 3KEYMASTER™ simulation platform is used in their nuclear full scope simulators that are mandated by the Nuclear Regulatory Commission (NRC) and remain integral to reactor operator training and licensing. Simulation assisted engineering tools optimize the design and commissioning of plants, to include Advanced Small Modular Reactors (ASMRs), by creating a digital twin of plant components and systems to reduce risk, accelerate delivery, and improve quality at a lower cost. In 2023, WSC was awarded a contract by TerraPower to support the design and development of the Natrium sodium fast reactor, and continues to contribute to the development of other leading ASMR platforms. In addition, generic simulators are used at universities, regulatory agencies, training centers and plants to offer classroom-based training on the operation of nuclear plants under normal and abnormal conditions. WSC’s simulation capabilities have also proven beneficial for U.S. Navy nuclear design agencies and shipyards to enhance the design process of nuclear systems and components for aircraft carriers and submarines. WSC, which was founded in 1995 and employs approximately 45 people, maintains operations in Frederick, MD.
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE: CW) is a global integrated business that provides highly engineered products, solutions and services mainly to Aerospace & Defense markets, as well as critical technologies in demanding Commercial Power, Process and Industrial markets. We leverage a workforce of approximately 8,600 highly skilled employees who develop, design and build what we believe are the best engineered solutions to the markets we serve. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright, headquartered in Davidson, North Carolina, has a long tradition of providing innovative solutions through trusted customer relationships. For more information, visit www.curtisswright.com.
This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 that are based on management's beliefs and assumptions. Such statements, including statements relating to Curtiss-Wright Corporation's expectations for the future opportunities associated with the acquisition, the success of transferring WSC’s technology throughout our existing world-wide network, and the success of the Company integrating WSC into its Naval & Power segment are not considered historical facts and are considered forward-looking statements under the federal securities laws. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in competitive marketplace and/or customer requirements; a change in US government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, marine, electronics and industrial companies. Please refer to the Company's current SEC filings under the Securities Exchange Act of 1934, as amended, for further information.
