GKN wing

UK-based GKN has signed a deal to acquire Netherlands-based Fokker Technologies from Arle Capital for €706m, in order to strengthen its presence in the aerospace industry.

Fokker is a Tier 1 supplier to commercial, military, and business jet segments, including lightweight aero-structures, electrical wiring interconnection systems and landing gear.

The company also provides maintenance, modification and logistic services to aircraft owners and operators, and has a workforce of around 5,000 with operations in Europe, North America and Asia.

For the year ended 31 December 2014, Fokker recorded revenues of €758m.

The transaction will combine two technology companies with a wide range of products designed for major aircraft platforms.

With this acquisition, GKN will become the second major aero-structures supplier, and third-largest player in electrical wiring systems for aircraft.

GKN Aerospace CEO Kevin Cummings said: "Strategically, this acquisition strengthens GKN Aerospace’s position as a market leader, enhances its global manufacturing footprint and adds new technology.

"It also increases GKN’s shipset value on key growth programmes in both the commercial and military markets."

"The combination of GKN Aerospace and Fokker will create a world-leading, innovative multi-technology aerospace company with a global footprint."

The company plans to finance the acquisition using €500m cash and existing debt facilities, with €206m through equity placement.

Following completion of the deal, Fokker will continue to be based in the Netherlands, and will become a new operating unit within GKN Aerospace.

Subject to consultation procedures and regulatory approvals, the acquisition is expected to be concluded in the fourth quarter of thefiscal year.

Fokker Technologies CEO Hans Büthker said: "The combination of GKN Aerospace and Fokker will create a world-leading, innovative multi-technology aerospace company with a global footprint.

"The innovation and technology driven culture in this larger company will provide broader and new opportunities for our employees who will be participating in some of the world’s largest and most challenging aerospace projects."


Image: GKN’s innovative wing leading-edge composite sandwich panel. Photo: courtesy of GKN Aerospace.