NYKOPING, Sweden - CTT Systems AB has signed an Exclusive Marketing Agreement with B/E Aerospace under which B/E is to promote and market CTT's Zonal Drying and Cair products. B/E has also entered into a Shareholders' Agreement with the two largest shareholders in CTT, Trulscom Forvaltning AB and Volito AB. Under the agreement, Volito and Trulscom have agreed to vote for a directed share issue to B/E and for the appointment of a B/E designee to the CTT board of directors. When the deal is complete, B/E will own less than 10 percent of the shares of CTT.

"CTT is enthusiastically convinced that B/E, with its strong brand, skilled sales team, and impressive customer footprint in the cabin interior market will leverage our OEM sole-source supplier position for CAIR into the broad retrofit market," said CTT CEO Torbjorn Johansson. "This, combined with the strong B/E commitment in driving the market for CTT's Zonal Drying and Cair products and providing access to new segments, such as business jets, will give greater visibility to our products and has the potential to significantly grow our installed base."

"We are pleased to offer CTT's complementary and unique products to our customers in an effort to boost airline awareness, increase market penetration, and drive sales growth," said B/E chairman and CEO Amin Khoury. "Many airlines are looking to improve their premium cabin class passenger experience and humidification is a key differentiator."

An Extraordinary General Meeting of CTT shareholders has been scheduled for October 8, 2014. The proposed agenda for the meeting includes approval of the CTT board's recent resolution to issue 1.138 million common shares to B/E (the proceeds of which are to be reinvested by CTT in research and development and manufacturing capacity and lean improvements), and the appointment of a B/E designee to the CTT board.

"Instantly CTT will get access to a well-established, world class sales team with frequent direct contacts with airlines top management and decision-makers," said CTT chairman Tomas Torlof. "To build up our own sales organization to scale our business on a stand-alone-basis would have taken much longer with far more risk involved and it is always challenging for a niche-product provider, such as CTT, to gain access to the right people within the airlines on a regular basis. We are pleased to have B/E onboard and look forward to the value B/E brings to our business and eventually enhancing value for CTT shareholders."

Source: CTT Systems