GKN to acquire Fokker Technologies for $771 million

 

Hoeksteen, Netherlands – GKN plc has agreed to acquire Fokker Technologies Group BV from Arle Capital for an enterprise value of 706 million euros (US$771 million).

 

The acquisition of Fokker further enhances GKN’s position as a leading global supplier to the aerospace industry. The combination brings together two leading technology companies with broad product portfolios and established positions on major aircraft platforms.

 

Fokker is a specialist Tier 1 supplier to the commercial, military, and business jet markets. With almost 5,000 employees Fokker is headquartered in the Netherlands and has operations in Europe, North America, and Asia. In the year ended Dec. 31, 2014, Fokker generated revenue of 758 million euros (US$827.5 million). 

 

Fokker specializes in the design, development, and production of lightweight aero structures, electrical wiring interconnection systems, and landing gear. It also provides maintenance, modification, and logistic services to aircraft owners and operators.

 

Kevin Cummings, chief executive, GKN Aerospace, said: “Fokker is a great business with strong customer relationships and a recognized commitment to the development and application of innovative technology. It is an excellent business that fits well with GKN Aerospace. 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 programs in both the commercial and military markets. The addition of Fokker further strengthens GKN Aerospace’s ability to meet the demands of our global customers – now and into the future.”

 

Hans Büthker CEO, Fokker Technologies, said: “The combination of GKN Aerospace and Fokker will create a world-leading, innovative multi technology aerospace company with a global footprint. GKN Aerospace and Fokker together have an impressive multi-technology portfolio for our customers. Fokker can benefit greatly from the scale, innovation, and financial power of GKN. 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.

 

“GKN was founded more than 250 years ago while Fokker has been at the forefront of aerospace technology for more than 100 years. Both companies understand the value of long-term investment and the importance of operational excellence. The combination will help to meet the challenges of a more competitive and increasingly global aerospace market.”

 

Once the acquisition is completed, Fokker, under the current leadership, will become a new operating unit within GKN Aerospace. Fokker’s headquarters will remain in the Netherlands and its brand will continue to promote its strong heritage of technology and customer service. Fokker will also continue with its R&D and manufacturing facilities in the Netherlands as well as with its partnerships with the Dutch government and knowledge institutes.

 

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.

 

GKN is a UK-headquartered Tier 1 supplier of airframe and engine subassemblies, transparencies, and fuel/flotation systems with a global workforce of more than 12,000 employees. It has a significant participation on most major aircraft programs and a customer base spanning the commercial, military, business jets, and space markets. 

 

Fokker Technologies is a global aerospace specialist that develops and manufactures highly engineered advanced aircraft systems and components for aircraft manufacturers and provides integrated maintenance services and products for aircraft owners and operators.