UK’s GKN to acquire Fokker Technologies

GKN Plc agreed to buy Dutch aerospace supplier Fokker Technologies Group B.V. for 706 million euros ($776 million), boosting links to the Airbus A350 and Lockheed Martin Corp.’s F-35 Joint Strike Fighter programs. With almost 5,000 employees the company is headquartered in the Netherlands and has operations in Europe, North America and Asia.

Fokker Technologies specialises in supplying aerostructures, wiring connection systems and landing-gear. It also provides maintenance, modification and logistic services to aircraft owners and operators.

GKN is acquiring Fokker Technologies to further strengthen its engineering capabilities and geographical reach. GKN is active in military, business aviation and space manufacturing. After the acquisition, Fokker will become a new operating unit within GKN Aerospace.

GKN, historically a supplier of auto parts which has over the last two decades moved into aerospace, said on Tuesday that it would fund the deal through a 200 million pound equity placing and through its existing debt facilities. The Fokker headquarters will remain in the Netherlands. Chief executive Hans Buthker says the company will “benefit greatly” from GKN’s scale and “financial power”. Both companies understand the value of long term investment and the importance of operational excellence.

The deal is expected to be completed in the fourth quarter of this year.

Leading credit ratings firm Moody’s said Fokker is a “good fit” for GKN, as it will bring complementary technology, broaden its product offering, increase its order book and a give better balance between GKN’s aerospace and automotive activities.