LONDON - In a deal that will boost GKN Aerospace position as a component supplier, it has agreed to acquire Fokker Technologies Group B.V. from Arle Capital for an enterprise value of EUR706 million ($780 million). Headquartered in The Netherlands, Fokker is a specialist tier one aerospace supplier in aerostructures, electrical wiring systems, landing gear and associated services, across commercial, military and business jet end markets.
Fokker has four divisions: aerostructures, electrical systems, landing gear and services. Fokker is well positioned on attractive programs including Airbus (A320/350/380), Lockheed Martin (F-35), Boeing (B737/777), Bombardier (C Series), Gulfstream (G650), United Technologies (GTF engine), Rolls-Royce (Trent 500/1000/XWB engine) and NH Industries (NH90), many of which are sole source and have life of program contracts.
The positions on F-35 and A350 offer attractive growth prospects with build rates expected to increase significantly in the short to medium term. Fokker has a stable base of orders, with the majority of the value of its orderbook coming from four programs: F-35, A350, G650 and NH90 European helicopter.
In 2014, Fokker reported revenue of EUR758 million, EBITDA of EUR76 million and operational EBIT of EUR53 million. As at 31 December 2014, Fokker had total assets of EUR814 million. Approximately 30 percent of its revenue was in military end markets and 20 percent in business jets. The addition of Fokker to GKN Aerospace will strengthen GKN's position in both of these. Fokker is a leader in advanced composites including thermoplastics and GLARE (glass-reinforced aluminum laminates) that will complement GKN's own composite leadership capability. Fokker also has strong electrical wiring technology, based on proprietary systems, which adds a new technology field to GKN Aerospace. In addition, Fokker has a 43.57 percent shareholding in SABCA (Société Anonyme Belge de Constructions Aéronautiques).
"Fokker is an excellent strategic and cultural fit which supports our growth strategy," said Nigel Stein, Chief Executive, GKN plc. "It strengthens GKN Aerospace's market leadership, manufacturing footprint and technology. This transaction will increase our shipset value on key growth program in both the commercial and military markets including Fokker's complementary positions on the A350 and the F-35. Fokker's sizable China operations also help boost GKN Aerospace's activity in this important region. Fokker is a great business with a strong brand and has significant technology heritage. We believe that it will benefit from GKN's operational focus and long-term approach. I look forward to welcoming the Fokker workforce to GKN."
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