Defence engineering group GKN spent £36.8m last week on a technology acquisition that gives it valuable exposure to the US aerospace market.
The company said the acquisition by its Westland Aerospace subsidiary of Dow-UT, a joint venture between United Technologies Composite Products and Dow Chemical Company, gave it access to resin moulding technology.
Dow-UT makes composite airframe structures and aircraft engine components. Last year the company made a net loss before interest and tax of £4.2m on revenues of £47.2m.
This was due to one-off exceptional charges. Dow-UT had been profitable for several years before this, but GKN declined to give details.
Net assets at completion are worth £42.7m. The company employs 750 people in Connecticut and Alabama. The acquisition is Westland Aerospace’s fourth in the last 15 months.
Engineering analyst Guy Hewett of Charterhouse Tilney said: ‘This latest move is important in terms of technology and strengthening its existing operations.’