GKN acquisition of US aerospace group increases civil sector exposure and extends aero engine capability

GKN plc of the UK today announces that it has agreed to acquire the Teleflex Aerospace Manufacturing Group (TAMG) - a leading manufacturer of complex engine components for the aerospace industry.

The combination of GKN's existing Engine Products business and TAMG will create a leading manufacturer of fixed and rotating engine components with a range of products including engine and fan cases, blades, blisks, vanes and cowls, utilised throughout the engine.

GKN is already well positioned in metallic engine components and, as a world leader in advanced composites, aims to take advantage of the growing composite content in aero engine development. This acquisition of a leading manufacturer with capabilities across a range of metals, including titanium, complements both the existing business and expands GKN's range of aerospace materials technologies.

Civil aerospace programmes account for approximately 70% of TAMG revenues which further increases GKN's exposure to this sector. TAMG has long-standing relationships with all the leading aero engine primes and positions on a range of established engine programmes such as the CFM56 and GE90 as well as new programmes for the light jet market and also the F-135 Joint Striker Fighter engine for the military market.

TAMG has approximately 600 employees on seven sites in the US, Mexico, UK and France and had sales of some $135 million in 2006 with a strong future growth profile. GKN is acquiring the business, with reported gross assets of $75 million at 31 December 2006, from Teleflex Incorporated of the US, on terms which have not been disclosed. The consideration will be satisfied from existing resources. The acquisition is subject to certain regulatory approvals and completion is expected by the middle of the year.

Marcus Bryson, Chief Executive of GKN Aerospace, said: "This acquisition will add momentum to the growth of GKN Aerospace. It will increase our revenues from the civil aircraft market and will grow our capability within the aero engine sector.

"TAMG has existing relationships with major customers that are highly complementary to our own Engine Products activity. The combination will give GKN increased ability to offer a wider range of material and processing solutions and higher level assemblies to meet the continuing performance improvements and development needs of our customers.�