Nacelle manufacturer Rohr is in merger discussions with an unnamed entity. The deal being discussed values the Chula Vista, California-based company at over $790 million. Rohr reported revenues of $771 million for 1996, and expected to exceed this in its 1997 fiscal year ended 31 July.
Speculation over a buyer centres on Boeing and Lockheed Martin. According to Rohr figures, the company has 45% of the market for nacelles on commercial aircraft with over 100 seats, Boeing has 30%, while Lockheed Martin has 6% - which will increase to 9% when it merges with Northrop Grumman. Acquiring Rohr would make Lockheed Martin the leading supplier of nacelles and fit in with its strategy of increasing its commercial aerostructures business.
Rohr manufactures nacelles for Airbus and Boeing (including McDonnell Douglas) aircraft, and for engine-makers General Electric, Pratt & Whitney and Rolls-Royce. The engine manufacturers are unlikely buyers, and a merger of Rohr with Boeing could be viewed by customers and regulators alike as resulting in too great a market dominance.
Source: Flight International
