Lucas Aerospace is to acquire the Boeing Georgia cargo handling systems operation, in a move, which appears to dispel speculation that the newly merged LucasVarity group would quit the aerospace sector.
The acquisition will bring sales of around $90 million, taking the Lucas cargo-handling business above the $200 million mark. Besides strengthening Lucas' position to win new work in the main and lower deck cargo systems market, the company will also gain a potentially lucrative after-market with rights to sell spares for Boeing 747, 767 and 777 cargo-handling systems directly to operators.
Lucas Aerospace Cargo Systems is already a major subcontractor to Boeing on handling systems and was widely tipped as the likely buyer when the aircraft builder announced that its Georgia unit was for sale earlier this year.
Questions had been raised over LucasVarity's likely commitment to the aerospace business, however. The merger at Lucas Industries and Varity, which was completed in early September, is designed to place the Anglo-US corporation among the world's top 10 automotive component suppliers and leaves the aerospace division making up less than 10% of group sales.
"Perhaps the Boeing Georgia acquisition now confounds those who thought that LucasVarity would rush to get out of aerospace," says Edward Stanford, analyst with UK securities house Albert E Sharp.
Lucas Aerospace is also understood to be close to finding a buyer for its troublesome US Geared System division.
Source: Flight International
