Hexcel Corp. and Woodward Inc. have reached a mutual agreement to terminate the merger they announced in January.
The companies cited the COVID-19 pandemic’s impact on the aerospace and industrial sectors and on the overall global markets for their decision. Woodward, based in Fort Collins, Colorado, is an independent designer, manufacturer and service provider of control system solutions and components, while Stamford-headquartered Hexcel develops, manufactures and markets lightweight, high-performance structural materials.
Woodward Chairman, CEO and President Tom Gendron and his Hexcel counterpart Nick Stanage issued a joint statement that read: “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,” the statement concluded.
The companies stated that neither will be required to pay the other a termination fee as a result of their mutual decision.