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Aviation History
2004
2004-09 - 2146.PDF
BUSINESS ACQUISITION JULIAN MOXON / LONDON Smiths strengthens in US market with Integrated Takeover will allow UK manufacturer to grow landing-gear and refuelling businesses Smiths Aerospace has purchased US equipment supplier Integrated Aerospace, a move that further consolidates the UK company's growing transatlantic portfolio. Smiths Aerospace group manag ing director Dr John Ferrie says the deal will "allow us to grow at the smaller end of the market, where procurement of fully integrated systems is the norm. We saw this as timely to position us in the market for aircraft of less than 30,0001b [13,600kg] all-up weight". He adds: "This is a strong acqui sition in our actuation and aerial refuelling businesses. It enables Smiths to provide complete land ing-gear systems for helicopters, business aircraft and the rapidly expanding market for UAVs. It also significantly expands our capability in aerial refuelling systems." Smiths paid $110 million for pri vately owned Integrated Aerospace, which had a turnover of $50 mil lion in the 12 months to September 2004. Ferrie says Smiths, like other sup pliers, has suffered from the down turn in civil business over the past three years but adds that there "has been a return to stability". During that period, the company has been digesting the merger with TI and divesting elements not seen as part of Smiths' core business. "We're cor rectly balanced now," he adds. "The civil side looks set to come back, but we're stronger with Boeing than Airbus and we'd like to build a stronger position with Airbus." Ferrie: timely deal PEOPLE • Finmeccanica chairman and chief executive Pier Francesco Guarguaglini has been elected president of the Aerospace and Defence Industries of Europe (ASD) for 2004-5, succeeding Mike Turner, chief executive of BAE Systems. Rainer Hertrich, chief executive of EADS, was nominated as ASD president elect 2005-6. • Michel Freuchet has been appointed head of EADS Sogerma Services, replacing Yves Richard on his retirement. • Northrop Grumman has named Linda Leukhardt as chief financial officer and vice- president of business management for its electronic systems sector. Frank Flores will become vice-president, engi neering, logistics and technology for its air combat systems busi ness area. Flores was director of the F-35 communications, navi gation and identification programme for the sector's radio systems organisation. Lisa Kohl has been made vice-president of operations for the integrated systems sector. ACQUISITION Aurora Group buys out K&F US aerospace supplier K&F Industries is to be acquired by Los Angeles-based investor Aur ora Capital Group for $1.06 billion in cash. Owned by Loral chairman Bernard Schwartz and Lehman Brothers Merchant Banking, K&F is the parent com pany of Aircraft Braking Systems (ABSC) and Engineered Fabrics. K&F is one of the highest- margin companies in the Flight International Aerospace Top 100. It had revenues last year of $343 million, down slightly from 2003 on lower sales at Akron, Ohio-based ABSC. ABSC was acquired from Goodyear by Loral in 1987, and combined with Engineered Fabrics to form K&F Industries in 1989. The company provides wheels and brakes for Bombardier CRJ and Embraer 170/190 regional jets and brak ing systems for business jets. CONTRACT AWARD GRAHAM WARWICK / WASHINGTON DC Win seals recovery at ex-TRW unit Goodrich says its selection to pro vide the engine-control system for the Rolls-Royce Trent 1000 power ing the Boeing 7E7 confirms the turnaround at the former TRW (Lucas) Aeronautical Systems unit in the UK, which it purchased in October 2002. It estimates the deal will generate more than $1 billion in original-equipment and after- market sales over 20 years. Goodrich will supply the engine- control system, as a risk- and rev enue-sharing partner. Rival Hamil ton Sundstrand, which is supplying the engine controls on the Trent 900 for the Airbus A380, will sup ply the gearbox - work valued at more than $350 million. "Hamilton Sundstrand won the Trent 900 contract around the time we were acquiring Aeronautical Systems," says Goodrich chief exec utive Marshall Larsen. "We wanted to get back in there." The Birming ham, UK-based Engine Control Systems unit supplies equipment for other Trent variants and the latest deal "will solidify our relationship with Rolls-Royce", he says. "After the acquisition, we knew we had to devote a lot more time and money to improving delivery reliability and quality. We are doing that and believe it gave Rolls-Royce confidence," says Larsen. The Trent 1000 control system "has a more advanced, innovative design with significantly more functionality than [the unit] on the Trent 500", says Larsen, adding that the design emphasises quality, manufacturability and reliability. The Trent 1000 will be lead engine on the Boeing 7E7. DIVERSIFICATION Hartzell's new acquisition vehicle opens account Hartzell Propeller is diversifying, forming a holding company as a vehicle for aerospace acquisitions. The first move by the new parent company, Charter Aerospace Part ners, is the acquisition of California- based Industrial Tube (ITC), a provider of non-metallic tubes and ducts to aircraft manufacturers. This is the first diversification by privately held Hartzell since it was acquired from TRW in 1987. "We have had success in growing our market share, but the propeller business is constrained," says Joseph Brown, co-president of the new holding company. "We want to substantially increase our sales over a five-year period." Charter Aerospace is looking to acquire several companies in the $15-40 million range, mainly in the hydromechanical and electro mechanical controls sector. www.fliqhtinternational.com FLIGHT INTERNATIONAL 26 OCTOBER - 1 NOVEMBER 2004 29
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