Onex plans Spirit stake sale
OFFERING Canadian private equity investor Onex is planning to sell a total of around 31.5 billion shares in aerostructures manufacturer Spirit Aerosystems at a price of $33.50 each. Spirit will not receive any of the profits from the sale.
Mettis Aerospace looks to USA for growth
STRATEGY UK-based metal forging specialist Mettis Aerospace is planning to capitalise on the foothold it has gained in the US market to meet its ambitious targets for growth. The company is forecasting sales of £53 million ($105 million) for the year ending March 2008 (see graph), of which around 20% is expected to come from the US market, where Boeing, Goodrich, Parker and UTC are important customers, says managing director Archie MacPherson. The company is present on both engines for the Lockheed Martin F-35 Joint Strike Fighter and expects revenue contributions from this work to increase from around 2011. The increasing push towards the use of composite materials is not a threat to the company, Mettis says, as it benefits from the need for titanium interfaces for these products. The company is also carrying out development work on metal matrix composites for various customers that could eventually be used on assembly structures. Mettis also has a partnership in place with a Chinese manufacturer, and MacPherson says it is considering similar projects elsewhere.
ATG seeks funding for Javelin joint venture
FINANCE Aviation Technology Group and Israel Aerospace Industries are seeking to raise $300 million in the US market to support the Javelin trainer joint venture and allow for certification and production infrastructure. The two companies are offering ATG bonds valued at a total of $300 million, with Citigroup as underwriter. IAI is teamed with ATG on the Javelin programme and is set to manufacture two military trainers based on the Javelin aimed at the civil market. The $6 million Mk 20 version, identical in size to theMk 10, will be equipped with ejection seats and military avionics for basic flight training and will be manufactured in Israel parallel to the production of the Mk 10 in the USA.
Honeywell agrees Dimension purchase
ACQUISITION Honeywell Aerospace is planning to strengthen its defence logistics business with the acquisition of Dimension International. It says the deal is an "exciting step forward" in its plan to pursue growth "beyond our traditional lines of business". The new business will form part of Honeywell Technology Solutions, which fits into the company's defence and space business unit. The tie-up "will add significant muscle to HTSI at a time when our customers need it most", says Honeywell chief executive Rob Gillette.
Alcan board turns down Alcoa takeover bid
REJECTION Alcoa's unsolicited $27 billion bid for rival Alcan has been rejected by the Canadian aluminium producer after its board of directors determined the offer to be "inadequate" and "contrary" to the best interests of Alcan shareholders. Explaining the board's recommendation that Alcan shareholders should not tender their shares, Alcan chairman Yves Fortier says it is clear to the Montreal-headquartered company that the two competitors "have fundamentally different approaches and track records in creating shareholder value. We are convinced that the proposed Alcoa-led acquisition of Alcan is not the right choice for our shareholders."
Source: Flight International