Aero-engine component manufacturer MB Aerospace has announced that it has acquired US-based Gentz Industries in a multimillion dollar deal.
The takeover doubles the size of MB Aerospace’s (MBAe’s) operations and expands the company’s international network of customers. Detroit-based Gentz Industries has an annual turnover of $43m, the move creating an international brand with total revenues in excess of $80m per annum.
The group, which has operations in Motherwell, Derby and Burnley, will focus on the supply chain management, manufacture and repair of highly complex machined and fabricated components for global aerospace and defence equipment manufacturers.
The acquisition was funded by the sale of MBAe’s two non-core subsidiaries, MB Faber (in August 2009) and MBAe Oil & Gas (March 2011). The purchase of Gentz Industries forms a key part of the company’s strategy to focus on its key aerospace business, the sales of subsidiaries providing additional capital to support funding thedeal.
Gentz Industries manufactures complex, high-precision engine components to an established customer base, comprising of Rolls-Royce, Mitsubishi Heavy Industries, Volvo Aerospace and the US Department of Defence.
The high level of demand for new-build airliners and the continued growth in global energy usage (which is often powered by gas turbines) makes this sector an attractive industrial market.
Data from independent forecasters report a demand for more than 30,000 new aircrafts to be delivered in the next two decades, with the total size of the airline fleet currently in service expected to more than double.
This growth is being fuelled by the rising demand for travel inAsiacoupled with the need of European and American airlines to replace aging aircraft fleets.
The merger of Gentz Industries’ 250 strong workforce with MBAe’s three sites in the UK brings the total number of employees in the group to more than 400.
Craig Gallagher, chief executive of MB Aerospace, said: “This multi-million dollar acquisition is part of our long-term strategy to grow our core aerospace business internationally.”
Mr Gallagher continued: “Our UK businesses continue to perform well, reporting an annual increase in revenue of 20% for the last four consecutive years. This acquisition opens up real opportunities for us to grow the business and develop strong long-term prospects in a mature aerospace market.”
The US and UK operations have two distinct customer bases that provides the opportunity to leverage the capabilities, which according to Mr Gallagher, will secure employment and support rapid growth of the business on both sides of the Atlantic.
Gentz chief operating officer, Roger Bartolomei, commented: “MBAe recognise the tremendous capabilities we have developed inMichiganand we are looking forward to developing our industry-leading complex component solutions business in partnership with MBAe.”