GE wraps up acquisition of Italian aviation company Avio Aero for foothold in European engine manufacturing
FAIRFIELD, Conn., 11 Aug. 2013. General Electric Co. (GE) in Fairfield, Conn., has completed the acquisition of Avio Aero, the aviation business of Avio S.p.A., in Turin, Italy that provides automation systems, combustion technology, mechanical transmission systems, and low-pressure turbines for military and civil aircraft.
FAIRFIELD, Conn., 11 Aug. 2013. General Electric Co. (GE) in Fairfield, Conn., has completed the acquisition of Avio Aero, the aviation business of Avio S.p.A., in Turin, Italy that provides aviation automation systems, combustion technology, mechanical transmission systems, and low-pressure turbines for military and civil aircraft.
The company, which is being renamed Avio Aero, a GE Aviation business, will act as the center of excellence for the entire General Electric Group in mechanical transmissions and low-pressure turbines. The purchase price was $4.3 billion, and GE did not purchase Avio's space unit. Avio Aero will operate as a business unit of GE Aviation in Cincinnati.
Avio Aero will retain headquarters in Turin, Italy. The acquisition furthers GE's participation and expertise in the areas of mechanical transmission systems, low-pressure turbines, combustion technology, and automation systems.
GE will pursue opportunities for Avio Aero in power-generation, oil, and marine products, company officials say. For example, Avio Aero's capabilities in transmission systems present growth opportunities in several industrial sectors.
Avio Aero operates Italian plants in Turin, Pomigliano d'Arco (Naples), and Brindisi, with 4,000 of its 4,700 employees in Italy. Avio Aero also has plants in Poland, Brazil, and China. Avio Aero has been a strategic supplier to GE for almost 30 years.
Avio Aero has content on GE engines ranging from the large GE90 and GEnx turbofan engines for commercial aircraft, to the smaller CT7/T700 turboshaft engine for civil and military helicopters. These GE engines are among the best-selling in aviation and are expected to provide a profitable, long-term revenue stream for the company.
GE, parent company to GE Aviation, already has a significant presence in Italy with more than 7,700 employees in seven GE businesses at more than 20 locations in-country, including the global headquarters of GE Oil & Gas Turbomachinery Products & Services in Florence with more than 5,200 employees in Italy.
GE Aviation, an operating unit of GE (NYSE: GE), is a leading provider of jet, turboshaft, and turboprop engines, components and integrated systems for commercial, military, business and general aviation aircraft.
For more information contact Avio Aero online at www.avioaero.com, or GE Aviation at www.geaviation.com.