Volvo Aero designs, engineers and manufactures components and sub-assemblies for aircraft engine turbines. It supplies all the major aero engine manufacturers and has positions on most major civil aerospace platforms. Volvo Aero employs around 3,000 people based in Sweden, Norway and the USA.
"This is a highly attractive acquisition for GKN creating a market leader in aero engine components,” said Nigel Stein, chief executive, GKN plc.
The acquisition enterprise value is SEK6.9 billion (£633 million) comprising SEK5.6 billion (£513 million) of equity value (consideration) together with an anticipated Volvo Aero pension settlement (£50 million) and working capital refinancing (£70 million).
GKN plans with this acquisition to become a world leader in both aero structures and aero engine components.
