Woodward repurchasing $250M in stock in wake of deal with GE

FORT COLLINS — Local manufacturer Woodward Inc. on Wednesday announced that it has inked a “50/50 joint venture” with General Electric Aviation to design, develop, source, supply and service the fuel systems for GE’s large commercial aircraft engine lines.

Woodward, in a press release, stated that the company will receive $250 million in cash from GE and that the two companies will participate jointly in operating results of the program. The transaction is subject to regulatory approvals and is expected to close by the end of this year.

In the wake of the deal, Woodward (Nasdaq: WWD) announced plans to repurchase $250 million in outstanding shares over the next 12 months.

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“We are pleased to announce this return of capital to our shareholders,” Woodward chairman and CEO Thomas Gendron said in a press release. “This represents a significant monetization of future cash flows related to several long-term programs.”

Fort Collins-based Woodward makes components and control system solutions geared toward energy efficiency for the aerospace and energy industries.