Howmet Aerospace Expands Its Portfolio with a $1.8 Billion Acquisition

Howmet Aerospace's Strategic Acquisition of CAM

Howmet Aerospace Inc. has announced a significant move in its growth strategy. The company has entered into a definitive agreement to purchase Consolidated Aerospace Manufacturing LLC (CAM) from Stanley Black & Decker for approximately $1.8 billion in cash. This acquisition is poised to enhance Howmet's standing in the aerospace and defense sectors by expanding its portfolio of high-tech, mission-critical fastening solutions.

Strengthening Aerospace Capabilities

With this acquisition, Howmet Aerospace will deepen its engagement with key aerospace and defense markets. CAM is recognized globally for its precision fasteners, fluid fittings, and other highly engineered products that cater to rigorous aerospace and defense requirements. The deal positions Howmet to leverage CAM's established brands and engineering expertise, aligning perfectly with the company's goals.

Executive Chairman and CEO, John C. Plant, emphasized that this acquisition is a pivotal step in enriching their fastener portfolio, which is vital for their overall strategy. He indicated that the complementary nature of CAM's offerings would significantly enhance Howmet’s capability to serve customers with a broader range of mission-critical fastening solutions.

Financial Anticipations

The financial implications of this acquisition are also noteworthy, as Howmet anticipates CAM to generate revenues between $485 and $495 million for the fiscal year 2026. Furthermore, CAM is expected to exhibit an adjusted EBITDA margin exceeding 20% before considering potential cost synergies. The anticipated combination of operational efficiencies and favorable tax treatment are set to yield a transaction multiple of about 13 times adjusted EBITDA, showcasing an attractive financial outlook for Howmet.

Closing Timeline and Advisory Team

The transaction is expected to finalize in the first half of 2026, subject to customary conditions and regulatory approvals. Supporting Howmet in this significant acquisition are J.P. Morgan Securities LLC as financial advisors and Cleary Gottlieb Steen & Hamilton LLP providing legal counsel.

About Howmet Aerospace

Headquartered in Pittsburgh, Pennsylvania, Howmet Aerospace is a leader in advanced engineered solutions tailored for the aerospace and transportation industries. The company focuses on critical components used in jet engines, fastening systems, and structural airframe components necessary for effective performance in aerospace applications. Furthermore, Howmet aims to innovate for improved fuel efficiency and lower carbon emissions with its diverse technologies, which include around 1,170 granted and pending patents.

For more details about Howmet Aerospace and their innovative solutions, visit www.howmet.com.

Looking Ahead

As the aviation and defense sectors continue to evolve, Howmet's acquisition of Consolidated Aerospace Manufacturing is a strategic move designed to enhance its capabilities significantly. By broadening its product offerings, Howmet Aerospace is not only looking to solidify its market position but also aiming to deliver exceptional value to its shareholders and customers alike.