03 February 2006
03 February 2006
Spirit AeroSystems is to acquire the Aerostructures business unit of BAE Systems, which has operations in Prestwick, Scotland and in Samlesbury, England. Spirit is paying £80 million ($142 million at current exchange rates) and assuming certain liabilities of the business.
”Spirit sees this as an opportunity to diversify our revenue base and accelerate our growth as a world leader in aerostructures and systems manufacturing,” said Executive Vice President and Chief Operating Officer Ron Brunton in a statement to employees.
The Aerostructures unit, which will be known as Spirit AeroSystems (Europe) Limited, produces structural components, chiefly on wings, similar to that in Spirit’s business unit in Tulsa, Oklahoma, but on different airplane programs. More than 80 percent of BAE Systems Aerostructures’ revenue is earned on Airbus airplanes, including the A320 family, the A330 and the A340. The remainder is from the Boeing 767 and 777, and from the Raytheon Hawker 800XP.
BAE Systems Aerostructures employs over 800 people in the United Kingdom, and has a history dating back to the early days of large scale airplane production in Scotland in the 1930s. BAE Systems Aerostructures had revenue of approximately $367 million in 2005.
Spirit will continue to focus on winning new work in both its U.S. and European operations. “We will grow our business both by winning new work and by expanding our presence around the world,” said Chief Executive Officer Jeff Turner. “Growth is fundamental to our long-term success as a company.” He added, “We welcome all the new employees to the Spirit family, and we look forward in sharing in our future successes together.We are excited about the prospects that this acquisition opens up for our new company. We are delighted to add Airbus and Raytheon as new customers of Spirit.”
Spirit expects to complete the transaction in the first half of 2006.