Smiths Industries has made its first major aerospace acquisition in years, with a $30 million deal to purchase Leland Electro-systems, a US manufacturer of high-performance electrical generators, which will sit alongside the UK group's growing business in power-management systems.
The UK group, which has diversified into medical and industrial businesses during the aerospace downturn, had been promising to build up its aerospace division if the opportunity arose. Dayton, Ohio-based Leland makes generators for a range of civil and military aircraft, including the Boeing 777 and McDonnell Douglas F-18, for both of which Smiths supplies management systems.
Sir Roger Hurn, chairman and chief executive of Smiths Industries, says that the two companies' product lines "-will be a great combination, and I am confident that Leland will be a net contributor to profits in its first full year with Smiths Industries".
The move is also seen as an attempt to satisfy demands from airframe manufacturers for further integration among their suppliers to boost efficiency.
Source: Flight International
