Leggett & Platt to Acquire Western Pneumatic Tube for $188M

Leggett & Platt LEG today announced the signing of a definitive agreement to acquire Western Pneumatic Tube Holding, LLC, a leading provider to the aerospace industry of integral components for critical aircraft systems. The transaction is structured as a cash purchase at an enterprise value of $188 million, is subject to customary closing conditions including regulatory clearance, and is expected to close by January 31, 2012. The operations will constitute a new, stand-alone business unit within Leggett & Platt's Industrial Materials segment. The acquisition is expected to be slightly accretive to Leggett & Platt's EPS in the first year. Western's current annual sales are approximately $60 million and rising, reflecting strong anticipated industry growth. The company is based in Kirkland, Washington, with an additional facility near San Diego, California. Western specializes in fabricating thin-walled, large diameter, welded tubing and specialty formed products from titanium, nickel-based alloys, stainless steels and other high strength metals for leading aerospace suppliers and OEMs. Western's products are utilized in demanding environments where product integrity and durability are paramount. Requirements regarding weight, corrosion, wear, and extreme temperature differentials necessitate the use of advanced, difficult-to-process alloys. The products are integral components of critical aircraft systems including fuel, hydraulic, pneumatic, environmental, stability, life support and cooling.