• Further strengthening leading Tier 1 aerospace supplier
• Compelling combination with an enhanced multi-technology portfolio
• Broadening geographic footprint in Europe, North America and Asia
• Fokker headquarters to remain in the Netherlands
AMSTERDAM, 31-7-2015 — /EuropaWire/ — GKN plc (“GKN”) today announces that it has agreed to acquire Fokker Technologies Group B.V (“Fokker”) from Arle Capital for an enterprise value of €706 million (£499 million).
The acquisition of Fokker further enhances GKN’s position as a leading global supplier to the aerospace industry. The combination brings together two leading technology companies with broad product portfolios and established positions on major aircraft platforms.
Fokker is a specialist Tier 1 supplier to the commercial, military and business jet markets. With almost 5,000 employees Fokker is headquartered in the Netherlands and has operations in Europe, North America and Asia. In the year ended 31 December 2014, Fokker generated revenue of €758 million.
Fokker specialises in the design, development and production of lightweight aero structures, electrical wiring interconnection systems and landing gear. It also provides maintenance, modification and logistic services to aircraft owners and operators.
Kevin Cummings, Chief Executive, GKN Aerospace, said:
“Fokker is a great business with strong customer relationships and a recognised commitment to the development and application of innovative technology. It is an excellent business that fits well with GKN Aerospace. Strategically, this acquisition strengthens GKN Aerospace’s position as a market leader, enhances its global manufacturing footprint and adds new technology. It also increases GKN’s shipset value on key growth programmes in both the commercial and military markets. The addition of Fokker further strengthens GKN Aerospace’s ability to meet the demands of our global customers – now and into the future.”
GKN is a UK headquartered global engineering group with over 50,000 people working in the aerospace, automotive and land systems markets. It has manufacturing facilities in more than 30 countries. GKN Aerospace is a global Tier 1 supplier of airframe and engine subassemblies, transparencies and fuel/flotation systems, with sales in 2014 of £2.2 billion (€3.1 billion) and a global workforce of more than 12,000 employees. It has a significant participation on most major aircraft programmes today and a broad customer base spanning the commercial, military, business jets and space markets.
Hans Büthker CEO, Fokker Technologies, said:
“The combination of GKN Aerospace and Fokker will create a world-leading, innovative multi technology aerospace company with a global footprint. GKN Aerospace and Fokker together have an impressive multi-technology portfolio for our customers. Fokker can benefit greatly from the scale, innovation and financial power of GKN. The innovation and technology driven culture in this larger company will provide broader and new opportunities for our employees who will be participating in some of the world’s largest and most challenging aerospace projects.
“GKN was founded more than 250 years ago while Fokker has been at the forefront of aerospace technology for more than 100 years. Both companies understand the value of long term investment and the importance of operational excellence. The combination will help to meet the challenges of a more competitive and increasingly global aerospace market.”
Once the acquisition is completed, Fokker, under the current leadership, will become a new operating unit within GKN Aerospace. Fokker’s headquarters will remain in the Netherlands and its brand will continue to promote its strong heritage of technology and customer service. Fokker will also continue with its R&D and manufacturing facilities in the Netherlands as well as with its partnerships with the Dutch government and knowledge institutes.
Completion of the acquisition is expected to take place in the fourth quarter of 2015 following completion of the information and consultation procedures with the Fokker Works Council and trade unions, ITAR and CFIUS regulatory clearances and anti-trust clearance in the EU and the US.
GKN and Fokker will host a press conference today at 12:30 hours CET at the Fokker Services office, Hoeksteen 40, 2132 MS Hoofddorp.
Details of this transaction were announced by GKN this morning and may be accessed found on the website www.gkn.com
Exchange rate: £1 to €1.4147 used throughout this press release
For further information, on this release please contact:
Chris Fox, Group Communications Director, GKN plc
T: +44 (0)1527 53 3238 M: +44 (0)7920 540051 E: firstname.lastname@example.org
Marianne Mulder, Communication Manager Fokker Technologies
M: +31 (0)651311217 E: email@example.com
Sabine Post, Hill+Knowlton Strategies T: +31 (0) 20 404 47 07
GKN plc is a global engineering group. It has four divisions; GKN Aerospace, GKN Driveline, GKN Powder Metallurgy and GKN Land Systems, which operate in the aerospace, automotive and land systems markets. Over 50,000 people work in GKN companies and joint ventures in more than 30 countries. GKN is listed on the London Stock Exchange (LSE: GKN) and recorded sales of £7.5 billion in the year to 31 December 2014.
GKN Aerospace is a global first tier supplier of airframe structures, engine components, transparencies and fuel/flotation systems, with sales of £2.2bn in 2014 and a global workforce of over 12,000 employees. It has a significant participation on all major aircraft programmes today and a broad customer base spanning commercial, military, business aerospace and space markets. The company’s extensive engineering capability and clear focus on targeted innovation has created technological and manufacturing leads in each of its areas of expertise.
Fokker Technologies is a leading global aerospace specialist that develops and manufactures highly engineered advanced aircraft systems and components for aircraft manufacturers and provides integrated maintenance services and products for aircraft owners and operators. The company was founded in 1919. Headquartered in Papendrecht, the Netherlands, Fokker Technologies operates facilities in the Netherlands, Romania, Turkey, Canada, Mexico, USA, China, India and Singapore, and employs approximately 4,900 people. For the year ended 31 December 2014, reported revenue was €758 million.
This Announcement contains certain “forward-looking statements” with respect to certain of GKN and Fokker’s (together, the “Companies”) plans and its current goals or expectations relating to their future financial condition and performance and which involve a number of risks and uncertainties. Forward looking statements are typically identified by the use of forward looking terminology such as ‘aims’, ‘believes’, ‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘intends’, ‘estimates’, ‘plans’, ‘assumes’ or ‘anticipates’ or the negative thereof or other words of similar meaning. Examples of such forward-looking statements include, among others, statements regarding the Companies’ business strategies, future plans, present or future events, or objectives for future operations that involve risks and uncertainties and are not historic fact. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Companies’ control and all of which are based on the Companies’ current beliefs and expectations about future events. Such statements are based on current expectations and, by their nature, are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance, expressed or implied, by the forward-looking statement. No assurance can be given that such forward-looking results will be achieved. Factors that might cause forward-looking statements to differ materially from actual results include, among other things, the following: global economic conditions, economic conditions in the jurisdictions in which the Companies operate, the effects of continued volatility in credit markets, exchange rate fluctuations and legislative, fiscal and regulatory developments. The forward-looking statements contained in this Announcement speak only as of the date of this Announcement and the Companies assume no obligation to, and does not intend to update or revise publicly any of them whether as a result of new information, future events or otherwise, except to the extent required by the Financial Conduct Authority, the London Stock Exchange, the Prospectus Rules, the Listing Rules and the Disclosure and Transparency Rules or any other applicable law or regulation.
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