TOM GILL / LONDON
Spain's Gamesa group is spinning-off its aeronautical division and merging it with Turbo 2000, majority-owner of aero-engine component manufacturer ITP, in order to create Spain's leading aircraft component manufacturer and allow Gamesa to concentrate on its booming energy business.
The deal will create "critical mass to have access to new and larger projects", say engineering group Sener and Spanish state holding company Sepi, shareholders in Gamesa and Turbo 2000.
The restructuring will be in two stages. Phase one will see ownership of the new company, provisionally named Newco, rationalised.
Gamesa (majority owned by IBV and Nefinsa of Spain) will initially own 59%, while Sener and Sepi will hold 20.5% each in the new company. Newco will own Gamesa's aerospace interests - Gamesa Aeronautica - and Turbo 2000. The latter holds 53.1% of ITP with Rolls-Royce owning the remaining 46.9%.
In the second phase, within a year, a minority stake in Newco will be floated on the Madrid stock exchange, after which Gamesa will be left with a stake of 3%, IBV and Nefinsa will hold 21.7% and 11.3% respectively, Sepi will own 20.5% and Sener will hold 22%.
Newco will have sales of c700 million ($613 million), with 80% in the civil sector and 20% in defence, according to the shareholders. Earnings before interest and tax are expected to be c47 million.
The rationale behind the deal is to balance exposure to the commercial and defence sectors, and to small and large aircraft, while gaining a presence over the entire value chain, including structures, engines, components and maintenance, say the shareholders.
Gamesa is a supplier of major structures for the Embraer ERJ-135/145 and 170/190, Bombardier CRJ700/900 and Sikorsky S-92. ITP's main contracts are for the Eurofighter's EJ200 engine and Rolls-Royce's Trent 500/700/800.
Source: Flight International
