Redditch-based GKN (
www.gkn.com) has acquired Fokker Technologies Group from Arle Capital for 706 million euros and announced its figures for the first six months of the year.
Fokker is a specialist Tier One supplier of aerostructures, electrical wiring systems, landing gear and associated services for both commercial and military markets. Its headquarters are in the Netherlands.
Aerospace is GKN’s second-largest division, with a sales increase of 6% (to £1.2 billion) in the first six months of 2015 and profits up 10% (to £133 million).
The purchase of Fokker builds up its holding in some of the sector’s biggest markets and boosts the role it will play in leading aircraft projects, including the Airbus A350XWb airliner project and the F-35 Joint Strike Fighter.
Chief executive Nigel Stein said: “Fokker is an excellent strategic and cultural fit that supports our growth strategy. It strengthens GKN Aerospace’s market leadership, manufacturing footprint and technology.
“Fokker’s sizeable China operations also help to boost GKN Aerospace’s activity in this important region. Fokker is a great business with a strong brand, and it has significant technology heritage. We believe that it will benefit from GKN’s operational focus and long-term approach.”
During the financial half-year, GKN’s Driveline business, which produces transmission systems for cars and trucks and is believed to have parts in nearly 50% of all new vehicles, saw its revenues rise by 3% to £1.8 billion and its trading profits rise by 6% to £150 million.
The Powder Metallurgy division saw its sales rise by 1% to £474 million and its trading profits rise by 6% to £56 million. The Land Systems unit, which produces components for vehicles used in farming, mining and construction, reported revenues down 13% to £371 million and trading profits halved to £15 million, with the unit taking a £5 million re-structuring charge during the period.
Mr Stein said: “This was another solid performance, particularly in our automotive businesses. GKN Aerospace delivered in line with expectations and won some important new contracts for the future. We have continued to perform well against our key markets, and we have reported good results in spite of some end-market weakness.
“We expect these trends to continue in the second half, and we expect 2015 to be another year of growth.”