Component purchase

GKN acquisition of US aerospace group increases civil sector exposure and extends aero engine capability.

UK company GKN has agreed to acquire the Teleflex Aerospace Manufacturing Group (TAMG) – a manufacturer of engine components for the aerospace industry.

The combination of GKN’s existing Engine Products business and TAMG will create a company that’s involved in the manufacture of fixed and rotating engine components with a range of products including engine and fan cases, blades, blisks, vanes and cowls, utilised throughout the engine.

GKN is already well positioned in metallic engine components and, as a world leader in advanced composites, aims to take advantage of the growing composite content in aero engine development. The acquisition of a manufacturer with capabilities across a range of metals, including titanium, complements both the existing business and expands GKN’s range of aerospace materials technologies.

Civil aerospace programmes account for approximately 70% of TAMG revenues which increases GKN’s exposure in the sector. TAMG has relationships with all the leading aero engine primes and positions on a range of established engine programmes such as the CFM56 and GE90 as well as new programmes for the light jet market and also the F-135 Joint Striker Fighter engine for the military market.

TAMG has approximately 600 employees on seven sites in the US, Mexico, UK and France and had sales of some $135 million in 2006 with a strong future growth profile. GKN is acquiring the business, with reported gross assets of $75 million at 31 December 2006, from Teleflex Incorporated of the US, on terms which have not been disclosed. The acquisition is subject to certain regulatory approvals and completion is expected by the middle of the year.