Hexcel, Woodward nullify their merger agreement
April 21, 2020 - United States Of America
With increasing economic uncertainties in both the aerospace and industrial sectors due to COVID-19 health crisis, Hexcel and Woodward have mutually agreed to terminate their merger agreement. In January 2020, the two companies had announced their decision to merge to create a premier integrated systems provider to serve the aerospace and industrial sectors.
Nick Stanage, chairman, chief executive officer and president of Hexcel said, “As events unfolded from the global pandemic, we came to the unfortunate conclusion that we had no choice but to move forward as independent companies. As a global leader in advanced composites technology with close customer connections and a clear value proposition for employees, customers, and shareholders over the long term, Hexcel will continue developing technology-rich innovations that deliver smarter, cleaner, and safer solutions for our customers around the world.”
Hexcel has announced a number of actions it is taking in response to the global coronavirus (COVID-19) pandemic and the related impact on its business.
Stanage said, “Like many companies, Hexcel is facing unprecedented challenges in light of the evolving COVID-19 pandemic. Our top priorities are the health and safety of our employees and successfully navigating the economic challenges created by the pandemic. Our plants are working to meet customer demand, and we believe we have an obligation to the national and economic security of the countries where we do business – and to our customers – to keep those plants open as long as we can safely do so because we are a sole source provider for many programmes, including critical defence platforms. We are staying close to our customers as we better understand how the pandemic is affecting their operations.”
To mitigate the effect of current market conditions, the company has taken immediate steps to reduce costs including implementing a hiring freeze, restricting travel, scrutinising all discretionary spending, curtailing capital expenditures, and evaluating employment levels to align with lower customer demand.