GKN is closing in on potential aerospace acquisitions as it looks to spend the $1.8 billion raised by the sale of its 50% stake in helicopter manufacturer AgustaWestland to Finmeccanica last year.
Although much of the windfall is being targeted at expanding the UK company’s larger automotive arm, aerospace takeovers are also on the cards, says Marcus Bryson, newly appointed chief executive of GKN Aerospace. “We’ve had nothing this year, but we’re working on it as we speak,” he says. “We have money for acquisitions and we are better positioned now than before we sold AgustaWestland.”
GKN’s main aerospace markets are aerostructures, engine systems and transparencies. Earlier this year, the company restructured its aerospace business into two product-focused divisions, one for aerostructures and one for propulsion and special products: previously it was split into three regional organisations.
Selling its share in the helicopter business – based in Yeovil, UK and near Milan, Italy – has further shifted the balance of GKN’s business towards the USA; 65% of its $1 billion revenues comes from North America and two-thirds of its 6,000-strong workforce is there. It has made nine major US acquisitions in recent years, including the 2001 purchase of Boeing’s fabrication plant in St Louis.
However, Bryson hints that non-US takeovers are likely. “We are keen to get a better balance in our geographic portfolio,” he says.
He also believes the strong recovery in the commercial airline market will allow GKN to expand its civil activities. Its US acquisitions have pushed defence sales to more than 60% of its business. Last year it turned down the opportunity to buy Boeing’s Wichita, Kansas civil aerostructures operation.
Bryson has been with GKN for 22 years and previously ran the propulsion systems and special products division. Before that, he was in charge of GKN Aerospace’s European operation.
MURDO MORRISON/LONDON
Source: Flight International
