MOTHERWELL, Scotland, 3 June 2013. MB Aerospace, the international aerospace engineering group, has acquired Delta Industries, an aero-engine component manufacturing business in Hartford, Conn.
The multimillion dollar deal to acquire Delta, expands the MB Aerospace business to projected revenues of more than $160 million (£100m) and to 550 employees (up from 370) for the 2013 financial year. Delta Industries had annual revenues in excess of $60 million in 2012.
"With its wide range of capabilities, long-standing customer relationships and its strong management team, the Delta business has been a long-term target for MB Aerospace. It is a perfect fit with our ambitions for future growth,” says MB Aerospace Chief Executive Craig Gallagher. "We are delighted to have succeeded in securing such a highly prized company and we believe that the combined group is positioned to take advantage of the available opportunities for further expansion in the months and years ahead.
"Today's announcement adds significant technical capabilities to the group, especially in relation to large-diameter fabrications and robotic welding of complex high-value aero engines components. In addition to its high levels of capability, Delta has an industry-leading reputation for its ability to manufacture challenging system-critical components," Gallagher adds.
The enlarged group now has a range of capabilities to provide OEMs with engineering skills/services alongside the complex products found throughout aero, marine, and industrial gas turbine engines. Core product technologies include casings, complex fabricated casings, rotating rings, complex structural assemblies and a range of diffusers, sync rings and high-value casings.
"The acquisition of Delta brings MB Aerospace significant engineering capacity with well invested technology alongside an ambitious management team, deep product engineering capabilities, and a strong book of business in commercial and U.S. defense end markets that will help support our growth plans,” Gallagher continues.
Together with Delta, the enlarged MB Aerospace group provides services and support to more than 45 separate aero-engine platforms across a range of commercial, defense, and industrial gas turbine applications.
MB Aerospace's key customers now include Pratt & Whitney, Rolls-Royce, General Electric, Boeing, United Technologies, GKN, Mitsubishi Heavy Industries, and the US Department of Defense.
Gallagher adds: "We see exciting opportunities in the years ahead, as the global airline sector is expected to grow significantly over the next two decades, doubling from its current 20,000 aircraft by the early 2030s.
"This growth is being fuelled by the rising demand for travel in Asia coupled with the need of European and American airlines to replace ageing aircraft, dramatically increasing the demand for the wide range of world-class manufacturing and aftermarket services we already provide to some of the world's biggest aviation players.
"The global installed base of gas turbine aero-engine derivatives is nearly 225,000 units across various aerospace, defense, and industrial applications and the majority of this fleet is expected to be growing and in service for several decades to come.
"The combination of our customer base along with Delta's clients is one of several powerful reasons why this deal is such a positive one for both organizations and the benefits to our expanded customer base will be significant. Following the acquisition of Delta we remain active in pursuing acquisition opportunities that complement our overall strategy."