FMC Corp. said it will buy Abex's Jetway Systems Division for $40 million in cash.
Jetway Systems, which designs, produces and installs passenger boarding bridges and other aircraft support systems, will be combined with FMC's airline equip-ment division, FMC said.The deal is expected to be completed at the end of May.
FMC executives said the deal "fits FMC's strategy of focusing on acquisitions in markets we understand" and should enhance Jetway's growth potential outside the United States.
"Jetway is the established market and technology leader in passenger boarding bridges and is at the forefront of the trend toward integrated gate systems, which provide such additional services as potable water, pre-conditioned air and electrical power to the aircraft via the bridge, " said Robert N. Burt, FMC's chairman and chief executive officer.
Jetway, formed by Stanray Pacific Corp. in 1959, developed an enclosed boarding bridge for United Airlines. It was later acquired by Pneumo Abex and became a public company in 1992.
Chicago-based FMC Corp. produces chemicals and machinery for industry, agriculture and government and reported annual sales of $3.8 billion in 1993.