Oshkosh Corporation has entered into a definitive agreement to acquire the AeroTech business from JBT Corporation in an $800m all-cash transaction.
AeroTech is a provider of aviation ground support products, gate equipment and airport services to commercial airlines, airports, air-freight carriers, ground handling and military customers. It owns many of the most trusted brands in the air transportation industry, with systems in the field that serve approximately 75% of air travellers at US airports and load approximately 70% of the world’s overnight express packages.
The company’s purpose-built products are closely aligned with Oshkosh’s technology focus areas, among them electrification, autonomy and active safety, and intelligent, connected solutions. Acquiring AeroTech will enable Oshkosh to enter the air transportation support market, which is in the early stages of an investment cycle driven by increasing air travel demand, commercial airline investments and infrastructure improvement.
The acquisition is expected to help Oshkosh’s growth and margins and deliver solid recurring revenue from its aftermarket parts and services offerings, the company said. AeroTech’s recurring revenue, together with the distinct investment cycle and demand dynamics of its end markets, are expected to further enhance Oshkosh’s overall business through market cycles.
“This transaction supports our ‘Innovate. Serve. Advance.’ business strategy as we enter the attractive air transportation support space with a market-leading portfolio of purpose-built products and comprehensive service offerings. AeroTech meets all the criteria of our M&A priorities, and we believe it will enhance the financial profile of our Vocational segment, further strengthening this growing segment and enabling it to move beyond our goal of $3bn-plus annual revenue with double-digit margins.
“We look forward to working with the AeroTech team to integrate the business and unlock value for our customers and shareholders,” said John Pfeifer, president and chief executive officer of Oshkosh Corporation.
Image: JBT AeroTech
