Some You See While Some You Don't, B/E's in Safety Items as Well as Seats

Big news at B/E Aerospace is its recent acquisition of M&M Aerospace Hardware, an aftermarket distributor of aerospace fasteners, for an initial purchase price of $177 million. M&M will become a supplier to B/E, which will in turn use M&M's worldwide distribution networks for its other aerospace products.

"In recent months, B/E has considered a number of options for accelerating growth," noted B/E CEO Robert Khoury at the time of the acquisition. "Achieving more significant growth and the advantages of greater size and scope requires a strategic expansion into a new but closely related market.

"The aerospace fasteners sector offers an attractive opportunity while remaining close to our existing customers and markets."

The business will complement B/E Aerospace three major business-related lines: seating, which is based in Miami; lighting, headquartered on Long Island, NY; and rubber products like de-icing boots from its SMR group in WV.

B/E is a major seat supplier to the airlines, but it also specializes in plush seats and divans for executive aircraft, all of which must meet the same stringent FAA safety and crashworthiness regulations yet offer rather more features and comfort than economy class.

B/E is also expanding its customer base beyond airlines and operators to include the completion centers that are working on the Boeing Business Jets, Gulfstream Vs and other aircraft. It has recently agreed to provide seats directly to completion outfits such as Ozark Aircraft Systems, Associated Air Center, Lufthansa Technik, plus other smaller companies.

B/E Aerospace earlier this year certificated its seats for the Gulfstream G200--the renamed Galaxy business jet that became part of Gulfstream when General Dynamics bought Galaxy--and it has also just delivered the first seats for Embraer's new Legacy business jet.

A new facility in Medley, FL, incorporating lean production techniques, will help the company meet its promise to take no more than 45 days from firm order to delivery of the seat structure (sans upholstery), down from around 60 days before.