Colorado-based Woodward Inc (a designer and manufacturer of control systems for aircraft engines and turbines) and Hexcel Corporation (an industrial materials company based in Connecticut) have agreed an all-stock ‘merger of equals’
to create a premier integrated systems provider.

The combined company, to be named Woodward Hexcel, will be among the world’s top independent aerospace and defence suppliers by revenue.

It will have more than 16,000 employees, manufacturing operations in 14 countries on five continents, and a diversified customer base in multiple markets.

Nick Stanage, Hexcel chairman and CEO (www.hexcel.com), will be the CEO of the combined company.

Tom Gendron, chairman and CEO of Woodward (www.woodward.com), will serve as executive chairman until its first anniversary.

Mr Stanage said: “The future of flight and energy efficiency will be defined by next-generation platforms delivering lower cost of ownership, reduced emissions and enhanced safety, and a combined Hexcel and Woodward will be at the forefront of this evolution.

"Woodward’s innovative control systems and Hexcel’s advanced lightweight materials are designed to drive improved reliability, efficiency and emissions.

"Through our combined scale and strong cash-flow profile, we will be even better positioned to accelerate innovation in aerodynamics and propulsion efficiencies and to support evolving customer needs.”

The combined company expects to spend about $250 million on research and development in its first full year and will have greater resources to invest in emerging technologies to support next-generation aerospace customer programmes and accelerate innovation in aerodynamics, propulsion, and energy efficiency.