Acquisition doubles size of MBAe
MB Aerospace chief executive Craig Gallagher says this multi-million dollar acquisition is part of our long-term strategy to grow our core aerospace business internationally
MB Aerospace Holdings has announced a multi-million pound acquisition of US-based Gentz Industries that will double the size of its current operations to over $80m per annum.
The group will focus on the supply chain management, manufacture and repair of highly complex machined and fabricated components for global aerospace and defence original equipment manufacturers.
The group, which has operations in Motherwell, Derby and Burnley, completed the sale of its two non-core subsidiaries, MB Faber (in August 2009) and MBAe Oil & Gas (March 2011), as part of its strategy to focus on its key aerospace business, whilst providing additional capital to support the funding of the US deal.
Gentz Industries, based in Detroit, North Michigan, has a strong reputation within the global aerospace industry, manufacturing complex, high-precision engine components to an established customer base, comprising some of the leading names in the global aerospace market.
Key customers of Gentz include Pratt & Whitney, Hamilton Sundstrand, Rolls-Royce, Mitsubishi Heavy Industries, Volvo Aerospace and the US Department of Defense.
The deal will see the merger of Gentz Industries’ 250 strong workforce with MBAe’s three UK sites in Scotland and England, bringing the total number of employees in the group to more than 400.
Craig Gallagher, chief executive of MB Aerospace Holdings Ltd, said: “This multi-million dollar acquisition is part of our long-term strategy to grow our core aerospace business internationally.
“Our UK businesses continue to perform well, reporting an annual increase in revenue of 20% for the last four consecutive years, and this acquisition opens up real opportunities for us to grow the business and develop strong long-term prospects in a mature aerospace market.
“We see strong synergies between the US and UK operations with two very distinct customer bases providing the opportunity to leverage the capabilities and strengths of both businesses into new markets, whilst securing employment and supporting the rapid growth of the business on both sides of the Atlantic.
Gentz’s 102,000 sq ft. facility in Detroit, Michigan, is a comprehensive manufacturing facility, which has been providing aerospace engineering solutions and industrial gas turbine technology to its established customer base for the last 50 years.
As well as being a complex component manufacture, Gentz has significant component repair capabilities underpinned by its high level in-house fabrications expertise, including electron-beam welding, laser deposition welding and vacuum brazing.
Images for this article - click to enlarge
Unless otherwise stated, all images copyright © Mercator Media 2012. This does not exclude the owner's assertion of copyright over the material.
