MB Aerospace Holdings Ltd Acquires US-Based Gentz Industries
GLASGOW, Scotland, December 13, 2011 /PRNewswire/ --
MB Aerospace Holdings Ltd, one of the UK's leading aerospace companies, has announced a multi-million pound acquisition of US-based Gentz Industries.
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The strategic acquisition doubles the size of MBAe's current operations creating an international brand with total revenues in excess of $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 defense original equipment manufacturers.
The group, which has operations in Scotland and England, 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, while providing additional capital to support the funding of the US deal.
Gentz Industries, based in Detroit, Michigan, has an outstanding 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, located 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 chief operating officer, Roger Bartolomei, commented: "We're excited and energized to be joining the MB Aerospace group of companies. Over the last four years we have invested heavily in the capacity and capability of the Gentz plant and have continued to foster the development of our highly skilled workforce.
"MBAe recognize the tremendous capabilities we have developed in Michigan and we are looking forward to developing our industry-leading complex component solutions business in partnership with MBAe."
Gentz's 130,000 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.
The established and wide customer base for the repair revenue stream complements MBAe's existing focus on aftermarket component solutions.
MBAe will support the Gentz business through its experience in global aerospace and defense supply chains and will offer its unique solution to US original equipment manufacturers for the fragmented and underperforming parts of their legacy supply chains.
Mr Gallagher added: "Our vision is to provide customers with world-class technologies and exceptional service. The newly enlarged group, based in the manufacturing heartlands of the United States and Great Britain, boasts a proven track-record within the aerospace industry.
"This significant investment will double MBAe's revenue steam and will open up exciting opportunities to develop our approach to legacy component sourcing solutions in the world's largest aero-engine marketplace."
The market for gas turbines is forecast to grow significantly over the next 20 years with strong demand for aero-derivative, power generation and industrial gas turbines.
Independent forecasters expect more than 30,000 new aircraft to be delivered in the next two decades, with the total size of the airline fleet currently in service expected to more than double.
This growth is being fuelled by the rising demand for travel in Asia coupled with the need of European and American airlines to replace aging aircraft.
The high level of demand for new-build airliners and the continued growth in global energy usage (which is often powered by gas turbines) make this sector a highly attractive industrial market for the foreseeable future.
Mr Gallagher added: "We are delighted to receive the continued backing of our investors LDC alongside our separate banking partners in the UK and US. This transaction also introduces us to a new banking relationship in the US with Comerica and we look forward to working with them to support the growing needs of the business."
Aurora Battaglia, Vice President of International Finance for Comerica, said: "We are extremely pleased to be able to continue the strong historical relationship with Gentz under the new MBAe ownership. We recognize MBAe's successful track record and industry experience and we believe it will provide the enlarged Group with new growth opportunities and a solid foothold in North America."
Notes to editors:
MB Aerospace Holdings Ltd.
MB Aerospace Holdings Ltd is an international aerospace engineering group providing complex engineering solutions to some of the key names in the aerospace and defense market.
The group provides an in-depth knowledge of critical manufacturing technologies and the global supply chain management to support complex aero-engine component manufacture and repair.
MBAe supports major corporations to address the root causes of under-performance in their extended and fragmented supply chains and helps safe-guard the continuity of supply in challenging circumstances.
Craig Gallagher, 38, Group Chief Executive, led the MBAe management buy-out in 2007, which acquired a number of engineering businesses from Scottish industrial veteran Motherwell Bridge. Since 2007, Gallagher and his team have secured strategic remits with a number of key aerospace and defense companies and completed the divestment of the group's non-core operations.
For more information about MBAe, visit http://www.mbaerospace.co.uk
Comerica
Comerica Bank is a subsidiary of Comerica Incorporated (NYSE: CMA), a U.S.-based financial institution headquartered in Dallas, Texas, and with other primary locations in Michigan, California, Arizona and Florida. Comerica has also a direct presence in Canada and in Mexico, reflecting a complete North American approach. Comerica, through its International Finance Division, also offers commercial banking services to foreign-owned companies operating in North America.
With nearly $61 billion in assets, and 162 years of operations, Comerica is among the 25 largest U. S. banking companies and is among the top 10 U.S. banks in terms of commercial and industrial loans to total assets. Comerica's focus is on relationships, and helping businesses and individuals be successful.
Comerica has a strong capital position, consistent credit standards and strong ratings. To learn more about Comerica, please visit http://www.comerica.com
Issued by The BIG Partnership on behalf of MB Aerospace Holdings Ltd.
SOURCE MB Aerospace Holdings Ltd
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