GKN Agrees to Buy Aerospace Supplier Fokker for $776 Million

British engineering company GKN is taking over Dutch plane maker Fokker Technologies from Arle Capital for €706m.

“The combination of GKN Aerospace and Fokker will create a world leading, innovative multi technology aerospace company with a global footprint.”, said Hans Buthker, CEO of Fokker.

Fokker specializes in the design, development and production of lightweight aero structures, electrical wiring interconnection systems and landing gear.

In the year ended December 31, 2014, Fokker generated revenue of 758 million euros. It also acts as a maintenance and modification provider. It also increases GKN’s shipset value on key growth programs in both the commercial and military markets.

Once the deal is completed company will become an operating unit of GKN but retain its current management, name and headquarters at Papendrecht in the Netherlands.

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. 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.

GKN chief executive Nigel Stein said: “Fokker is an excellent strategic and cultural fit which supports our growth strategy”.

“Strategically, this acquisition strengthens GKN Aerospace’s position as a market leader, enhances its global manufacturing footprint and adds new technology”.