Motherwell-headquartered MB Aerospace has announced the acquisition of Delta Industries in a multi-million dollar deal
MB Aerospace is a precision components specialist with existing sites in the UK (Motherwell, Derby and Burnley) and the US. It was acquired in March this year by the US private equity firm Arlington Capital Partners as part of an MBO led by MB CEO Craig Gallagher.
The acquisition of Connecticut-based Delta Industries will raise company revenues by around $60m and add around 180 employees bringing MB’s total employment base internationally to around 550.
The acquisition follows MB’s strategy to lead consolidation in the global aero-engine precision components market.
Following confirmation of the acquisition Mr Gallagher said: “With its wide range of capabilities, long-standing customer relationships and its strong management team, the Delta business has been a long-term target for MB Aerospace. It is a perfect fit with our ambitions for future growth.”
Gallagher continued to say that Delta would add significant technical capabilities to MB, especially in relation to large-diameter fabrications and robotic welding of complex high-value components. He added: “The Delta acquisition is part of a progressive widening of MB Aerospace’s capability footprint to address the critical service needs of our aero-engine customers.
“Historically, a typical aero-engine would have more than 400 unique suppliers; on the next generation of aero-engines this will be reduced to around 100 with tier one suppliers required to operate across a range of capabilities to serve their customers.”
MB Aerospace already supplies many big names in the aerospace and defence industries, including Pratt & Whitney, Rolls Royce, General Electric, Boeing, United Technologies, GKN, Mitsubishi Heavy Industries and Volvo Aerospace.
Confidently demonstrating the size of MB’s markets and demand for its products and services, Gallagher said: “The global installed base of gas turbine aero-engine derivatives is nearly 225,000 units across various aerospace, defence and industrial applications and the majority of this fleet is expected to be growing and in service for several decades to come.”