GKN acquires Volvo Aero for £633m
05 July 2012
GKN has acquired Volvo Aero (the aero engine division of AB Volvo), which designs, engineers and manufactures components and sub-assemblies for aircraft engine turbines. The company supplies all the major aero engine manufacturers and has positions on most major civil aerospace platforms that are set to increase as aircraft build rates ramp up. Volvo Aero employs some 3,000 people based in Sweden, Norway and the USA.
Nigel Stein, Chief Executive, GKN plc, said: “This is a highly attractive acquisition for GKN creating a market leader in aero engine components. With excellent technology and strong life-of-programme positions on most civil aero engines, Volvo Aero will significantly enhance GKN Aerospace’s engine components business.” The acquisition enterprise value is SEK6.9 billion (£633 million).
Nigel Stein added: “Volvo Aero has invested heavily to secure positions on new engine programmes, offering a long-term platform for growth. Its strong standing with customers, together with its skilled workforce and high quality engineering team, will be a valuable addition to GKN Aerospace.”
Commenting on the acquisition business secretary Vince Cable said: "This is good news for the UK aerospace sector and I welcome the fact that a UK company has the confidence to pursue a takeover of this scale. This builds on the already impressive range of capabilities that GKN has.
"Our aerospace sector, which employs 100,000 people, is world class and through deals such as this continues to bolster its position as Europe's largest. It's particularly welcome coming just a few days ahead of the Farnborough International Airshow, where the world will come to the UK to see the strengths we have as a nation in this industry."