British engineering company GKN is taking over Dutch plane maker Fokker Technologies from Arle Capital for €706m.
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Leading credit ratings firm Moody’s said Fokker is a “good fit” for GKN, as it will bring complementary technology, broaden its product offering, increase its order book and a give better balance between GKN’s aerospace and automotive activities.
Much of the GKN business is based in the US, where it produces aerostructures, engine components and various other parts for Boeing, Lockheed Martin, General Electric and other key military and civil suppliers.
In a press release GKN described the rationale for the move as helping to increase the company’s global footprint, as well as increasing its standing in the aero structures and the electrical wiring systems markets. Its 2014 revenues totaled €758 million. It also acts as a maintenance and modification provider.
Following the transaction, Fokker Technologies will become a GKN Aerospace operating unit, run by its existing management team from its Netherlands headquarters.
“It strengthens GKN Aerospace’s market leadership, manufacturing footprint and technology”. Chief executive Hans Buthker says the company will “benefit greatly” from GKN’s scale and “financial power”.
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Completion of the acquisition is expected to take place in the fourth quarter of 2015 following completion of the information and consultation procedures with the Fokker Works Council and trade unions, ITAR and CFIUS regulatory clearances and anti-trust clearance in the EU and the US.
