Hexcel Corporation (NYSE: HXL) and Woodward, Inc. (NASDAQ: WWD) have agreed to terminate their merger agreement that was previously announced on January 12th, 2020 as both parties agreed to combine in an all-stock equal merger. The board of directors from both companies have agreed in the terminate as the increased impact on the aerospace and industrial sectors by the coronavirus pandemic have negatively affected both.
In a joint statement, Tom Gendron, Chairman, Chief Executive Officer and President of Woodward, and Nick Stanage, Chairman, Chief Executive Officer and President of Hexcel, said, “While we both believed from the outset, and continue to believe, in the benefits of a combined Woodward and Hexcel, we mutually concluded after careful consideration that given the significant uncertainty in the market, it would not be prudent to continue to pursue the combination and integration of our companies in a merger of equals. Although we are disappointed with this outcome, we are confident this is the right decision for our customers, our shareholders, and our employees as it allows each of us to dedicate our focus and resources toward ensuring Woodward and Hexcel each remain strong and closely connected with our customers and supply chains during these unparalleled times. We continue to be hopeful that our two companies will find opportunities to collaborate on next-generation platforms in the future for the benefit of our customers.”
No termination fees will be delegated as the decision was mutual.
Written by Danny Abramov.
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