Fast-growing US aerospace group DeCrane Aircraft is continuing on the acquisition trail with a deal to buy Avtech, a Seattle-based electronic systems specialist, for $83 million. Chairman Jack DeCrane says the purchase should take the group's sales above $200 million next year.
Avtech supplies a range of communication, power and control systems, including some innovative technologies such as audio, lighting and airborne fax systems. DeCrane also hopes that the acquisition will help its efforts to build up commercial upgrade work and expand its presence in the corporate and regional aircraft markets.
"We saw an opportunity in 1997 in cabin management for aircraft like Bombardier's Global Express and Lear 45, and the Gulfstream V," says DeCrane. "The bottleneck is the completion centres and we thought the industry needed more turnkey capability."
Avtech will also work closely with another DeCrane acquisition, Hollingshead, which won the integration contract for KLM's Boeing 747 "Classic" flightdeck upgrade.
DeCrane also expects Avtech to fit well with its existing capabilities in systems integration. "We can do all the installations and tackle three main areas - inflight entertainment systems, safety mandate work and satellite based navigation and control," he says. Avtech will continue as a separate subsidiary under its current management team.
"We felt it was important to align ourselves with a larger organisation and one that could bring long-term stability," says Avtech general manager Gene Zipp.
Source: Flight International
