Curtiss-Wright Finalizes Acquisition of Ultra Energy

Curtiss-Wright Finalizes Acquisition of Ultra Energy to Expand Nuclear and Aerospace & Defense Offerings

Curtiss-Wright Corporation has successfully completed the acquisition of Ultra Nuclear Limited and Weed Instrument Co., Inc. (collectively referred to as “Ultra Energy”) for a total of $200 million in cash. This strategic acquisition strengthens Curtiss-Wright’s position as a global leader in providing advanced measurement and control systems, particularly in the Commercial Nuclear, Aerospace, and Defense markets.

Expansion of Curtiss-Wright’s Nuclear Capabilities

Ultra Energy is widely recognized for its expertise in designing and manufacturing safety-critical measurement and control systems. The company specializes in reactor protection systems, neutron monitoring systems, radiation monitoring systems, and high-precision temperature and pressure sensors. These systems are essential for ensuring the safe and reliable operation of commercial nuclear reactors and power generation plants, especially in highly regulated and safety-sensitive environments.

In addition to serving the commercial nuclear sector, Ultra Energy has a strong presence in the defense industry, providing crucial support to the legacy UK nuclear submarine fleet and assisting in the development of both current and next-generation naval ship designs. With the integration of Ultra Energy, Curtiss-Wright significantly expands its existing nuclear and aerospace offerings, aligning with its strategic priorities outlined at the company’s 2024 Investor Day.

Strategic Benefits for Curtiss-Wright

The acquisition of Ultra Energy enhances Curtiss-Wright’s commercial nuclear portfolio by adding highly complementary measurement and control solutions. These systems are critical in supporting the life extension and modernization of aging power plants, ensuring continued operation and safety. Additionally, Ultra Energy’s expertise will further bolster Curtiss-Wright’s position with leading global designers of small modular reactors (SMRs), particularly in the United States and Europe, as the nuclear industry shifts towards more compact, flexible reactor designs.

Curtiss-Wright has made clear its commitment to maintaining a strong growth trajectory and generating robust free cash flow. Ultra Energy’s strong financial performance in 2023, which included sales of approximately $65 million, demonstrates the company’s potential to drive further growth. The acquisition is expected to be accretive to Curtiss-Wright’s adjusted diluted earnings per share in the first full year following the transaction, excluding the costs associated with purchase accounting. In addition, Ultra Energy is poised to deliver a free cash flow conversion rate exceeding 100%, contributing to the company’s long-term financial stability.

As part of the integration, Ultra Energy will operate within Curtiss-Wright’s Naval & Power segment, which is dedicated to providing solutions that enhance the safety, reliability, and performance of critical infrastructure in both defense and commercial sectors.

Ultra Energy’s Legacy and Expertise

Ultra Energy’s origins date back to the 1950s, when its predecessor companies began specializing in neutron monitoring systems. In the late 1960s, the company expanded its capabilities to include the manufacturing of temperature and pressure sensors. These innovations have helped shape the company’s reputation as a trusted provider of essential systems for nuclear power generation and defense applications.

Today, Ultra Energy’s portfolio includes several key technologies that are fundamental to the operation of nuclear reactors and power plants. Its neutron monitoring systems are used to measure reactor power and ensure safety management, while its radiation monitoring solutions play a vital role in plant safety. The company’s reactor protection systems continuously monitor plant conditions, providing real-time data to safeguard reactor operations. Additionally, Ultra Energy’s temperature and pressure sensors are known for their high accuracy and reliability, ensuring precise monitoring of critical systems in both commercial and military applications.

The acquisition will allow Curtiss-Wright to leverage Ultra Energy’s established expertise in these areas to expand its market reach and solidify its position as a global leader in safety-critical systems for the nuclear and aerospace industries. Ultra Energy currently employs approximately 300 people, with primary operations based in Wimborne, UK, and Round Rock, Texas.

Implications for Curtiss-Wright’s Growth Strategy

Curtiss-Wright has long focused on expanding its capabilities in high-tech, mission-critical industries, with an emphasis on nuclear, aerospace, and defense markets. The acquisition of Ultra Energy is a natural extension of this strategy, allowing the company to offer a more comprehensive suite of products to its customers while addressing evolving industry needs. The ongoing modernization and life extension of nuclear power plants, as well as the development of new reactor technologies, represent significant growth opportunities for Curtiss-Wright in the coming years.

Moreover, the integration of Ultra Energy into Curtiss-Wright’s operations supports the company’s long-term goals of achieving profitable growth and maximizing shareholder value. By enhancing its portfolio with advanced measurement and control systems, Curtiss-Wright is better positioned to capitalize on the growing demand for safe, reliable, and efficient solutions in the energy and defense sectors.

Looking Ahead: A Stronger Future for Curtiss-Wright

With the acquisition of Ultra Energy, Curtiss-Wright is poised for continued success in the commercial nuclear, aerospace, and defense markets. The addition of Ultra Energy’s leading-edge technologies and expertise will further strengthen the company’s capabilities in reactor protection, monitoring systems, and safety-critical sensors. As the nuclear energy sector continues to evolve, Curtiss-Wright is well-positioned to play a pivotal role in shaping the future of nuclear power generation and supporting the transition to cleaner, more sustainable energy solutions.

As the company moves forward with integrating Ultra Energy into its operations, it is confident that this acquisition will contribute to its strategic objectives of expanding its portfolio, driving innovation, and achieving strong financial performance. With a solid foundation of expertise, a comprehensive product portfolio, and a commitment to excellence, Curtiss-Wright is ready to tackle the challenges and opportunities that lie ahead in the dynamic and growing sectors of nuclear energy and aerospace & defense.

Curtiss-Wright’s acquisition of Ultra Energy marks a significant milestone in the company’s ongoing expansion within the nuclear and aerospace & defense sectors. The transaction strengthens Curtiss-Wright’s position as a global leader in providing safety-critical measurement and control solutions, while also supporting its long-term growth strategy and commitment to delivering strong financial performance. As the company integrates Ultra Energy into its operations, it looks forward to enhancing its capabilities in supporting plant modernization, advancing reactor safety, and contributing to the development of next-generation nuclear technologies.

Through this acquisition, Curtiss-Wright is poised to continue its leadership in providing critical solutions that ensure the safe and reliable operation of energy infrastructure and defense systems worldwide. With an expanded portfolio of technologies and a strong financial outlook, Curtiss-Wright is well-equipped to capitalize on the opportunities that lie ahead in the nuclear and aerospace industries.

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