Carlyle-backed Cyient to acquire US aerospace firm B&F Design

Cyient Defense Services Inc., a step-down subsidiary of engineering design firm Cyient Ltd, has entered into a definitive agreement to acquire Connecticut-based B&F Design Inc. in an all-cash deal.

The deal involves a payment of $5.5 million (nearly Rs 35.13 crore) on a cash- and debt-free basis subject to closing adjustments, the Hyderabad-headquartered company said in a stock-exchange filing.

The deal is likely to be closed over the next 90 days.

The acquisition will strengthen Cyient’s aerospace and defence service offerings by adding 'design, build and maintain' capabilities centred around tooling and precision engineering, the company said in a release.

“Through this acquisition, we are better positioned to provide increased value to our customers by undertaking more comprehensive work,” said Anand Parameswaran, senior vice president and head for aerospace and defence, Cyient Ltd.

This is Cyient’s sixth acquisition in the last three years as part of its ‘Design-Build-Maintain’ strategy.

Established in 1965, B&F Design’s areas of expertise include design and manufacturing of precision engine assembly equipment, repair tooling, machining of fixtures and gauges, and engine factory modernisation services. The company, which currently employs 47 people, posted a revenue of $8.5 million in 2016.

Incorporated in September 2016, Florida-based Cyient Defense Services Inc. is a wholly-owned subsidiary of Cyient Inc.

In February, Cyient Inc had acquired US-based Certon Software Inc for a consideration of $7.5 million.

In November 2016, Cyient Ltd had acquired UK-based Blom Aerofilms Ltd to expand its offerings in the geo-spatial space.

Cyient has attracted several private equity firms as investors. Carlyle had picked up a 10% stake in the firm for Rs 210 crore in 2012. ChrysCapital, which had invested Rs 80-90 crore in May 2013 in Cyient, partially exited in January 2015.

Previously, General Atlantic, which had invested Rs 260 crore in 2007, fully exited the firm in 2014.

In 2015, Cyient sold its IT services unit Techwave Consulting Inc to focus on its core engineering services, data, network and operations businesses.

Cyient reported a consolidated revenue of Rs 3,699.7 crore for the financial year ended March 2017. The company has clients in the aerospace, consumer goods, energy, medical, mining, semiconductor, rail transportation, telecom and utilities industries.

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