(Reuters) — Aircraft parts supplier AAR Corp. said it would buy two businesses from rival Teleflex Inc. for $280 million to expand its aircraft cargo systems business.
Wood Dale-based AAR Corp. expects the acquisitions of Telair International and Nordisk Aviation Product to add over $225 million to revenue and 20 to 25 cents per share to earnings in 2013.
It will fund the deal through an existing revolving credit facility.
Teleflex chief executive Benson Smith said in a separate statement that the deal was part of the company's strategy to transform from a cyclical, diversified-industrial conglomerate into a pure-play medical technology company.
Teleflex, which has a market capitalization of $2.25 billion, plans to use the deal proceeds to reduce debt.
Telair, which has manufacturing units in Germany, Sweden and Singapore, supplies on-board cargo loading systems to aircraft manufacturers like Airbus-maker EADS and Boeing.
Nordisk designs and manufactures heavy-duty pallets and lightweight cargo containers for commercial airlines.
Earlier this month, Goodrich Corp., an aircraft parts maker, acquired Winslow Marine Products, which provides life rafts for business jets and commercial helicopters.
Shares of AAR, which has a market capitalization of $713 million, closed at $17.63, while those of Teleflex closed at $55.34 on Thursday on the New York Stock Exchange.
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