Welcome!

News Feed Item

MB Aerospace Continues Consolidation of Aero-Engine Precision Components Market With Multi-Million Dollar Acquisition

MOTHERWELL, Scotland, June 2, 2013 /PRNewswire/ --

- Delta Deal Will Lift Group's 2013 Revenues To £100m / $160m-

MB Aerospace, the international aerospace engineering group, has today announced the acquisition of US-based aero-engine component manufacturing business Delta Industries, which had annual revenues in excess of $60m in 2012.

     (Photo: http://photos.prnewswire.com/prnh/20130602/618342 )

The multi-million dollar deal to acquire Delta, based in Hartford, Connecticut, will expand the MB Aerospace business to projected revenues of more than $160m (£100m) and to 550 employees (up from 370) for the 2013 financial year.

The acquisition follows MB Aerospace chief executive Craig Gallagher leading a secondary MBO of MB Aerospace sponsored by Washington DC based private equity firm Arlington Capital Partners ('Arlington') in March of this year.  

Mr Gallagher said: "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.

"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."      

The enlarged group now has a range of capabilities able 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.

Mr Gallagher added: "The Delta acquisition is part of a progressive widening of MB Aerospace's capability footprint to address the critical service needs of our aero-engine customers. Historically, a typical aero-engine would have more than 400 unique suppliers; on the next generation of aero-engines this will be reduced to around 100 with tier one suppliers required to operate across a range of capabilities to serve their customers.

"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. defence end markets that will help support our growth plans. We also believe that establishing a new base for MB Aerospace in the aerospace community of Hartford, Connecticut, is another strategic step for the group as we broaden our customer reach, skills base and retain close proximity to the engineers at our key customers.

"MB Aerospace has always favoured manufacturing in the industrial heartlands of North America and the United Kingdom. Accessing the engineering skills and heritage of the Connecticut aerospace corridor will strongly complement similar features of our existing operations in Detroit - Michigan, Motherwell - Scotland, Burnley - England and Derby - England."

MB Aerospace already supplies many key names in the aerospace and defence industries, providing supply chain integration services alongside the manufacture and repair of complex aero-engine components.  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, defence and industrial gas turbine applications.

The Delta acquisition takes the group's staffcount in the US to more than 400, in addition to its three UK sites in Scotland and England which employ upwards of 150. Through its recent acquisition programme, MB Aerospace has sought to acquire operations with a rich level of engineering resource embedded throughout the business - with the acquisition of Delta, the group will employ more than 125 manufacturing and quality engineers, providing significant bandwidth to robustly serve its customers and capitalize on the period of sustained growth anticipated across the industry.                    

Bill Evans II, President of Delta Industries, commented: "We are delighted to join MB Aerospace - in them we see a business which is actively looking to grow in the aero-engine components market where it has key supply chain presence coupled with a strong range of customer relationships.

"We believe that these, combined with the capabilities and track record of our people here in Hartford, can propel Delta Industries on to even greater achievements and we're all looking forward to being part of that journey."

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.  

Craig Gallagher added: "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, defence 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 organisations 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."

Issued by The BIG Partnership on behalf of MB Aerospace.

Notes to editors:

MB Aerospace is an international aerospace engineering group providing complex engineering solutions to some of the key names in the aerospace and defence market.

MB Aerospace provides an in-depth knowledge of critical manufacturing technologies and the global supply chain management to support complex aero-engine component manufacture and repair.

MB Aerospace supports major corporations to address the root causes of under-performance in their extended and fragmented supply chains and helps safe-guard the continuity of supply in challenging circumstances.

MB Aerospace Chief Executive, Craig Gallagher, led the initial buyout in 2007 followed by the recent secondary management buy-out with the intent of building a global business of scale.  MB Aerospace provides critical supply chain solutions, complex component manufacture and component repair to key industry primes and is targeting growth through strategic acquisitions in North America, remit extensions for its existing US and UK businesses.

In March of this year MB Aerospace announced the completion of a secondary MBO - via new investors Washington DC-based private equity fund Arlington Capital Partners ('Arlington') - to provide significant funding for a planned series of acquisitions.

Following strong growth and with a pipeline of significant opportunities, MB Aerospace attracted support from Arlington who have taken a majority stake in the business alongside the MB Aerospace management team as part of the secondary buyout.

SOURCE MB Aerospace

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
The revocation of Safe Harbor has radically affected data sovereignty strategy in the cloud. In his session at 17th Cloud Expo, Jeff Miller, Product Management at Cavirin Systems, discussed how to assess these changes across your own cloud strategy, and how you can mitigate risks previously covered under the agreement.
Digital Initiatives create new ways of conducting business, which drive the need for increasingly advanced security and regulatory compliance challenges with exponentially more damaging consequences. In the BMC and Forbes Insights Survey in 2016, 97% of executives said they expect a rise in data breach attempts in the next 12 months. Sixty percent said operations and security teams have only a general understanding of each other’s requirements, resulting in a “SecOps gap” leaving organizations u...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and Bi...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
Cell networks have the advantage of long-range communications, reaching an estimated 90% of the world. But cell networks such as 2G, 3G and LTE consume lots of power and were designed for connecting people. They are not optimized for low- or battery-powered devices or for IoT applications with infrequently transmitted data. Cell IoT modules that support narrow-band IoT and 4G cell networks will enable cell connectivity, device management, and app enablement for low-power wide-area network IoT. B...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Transformation Abstract Encryption and privacy in the cloud is a daunting yet essential task for both security practitioners and application developers, especially as applications continue moving to the cloud at an exponential rate. What are some best practices and processes for enterprises to follow that balance both security and ease of use requirements? What technologies are available to empower enterprises with code, data and key protection from cloud providers, system administrators, inside...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes how...
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, will outline ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and...