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LDC-backed MB Aerospace completes US acquisition

LDC-backed MB Aerospace Holdings (MBAe), one of the UK’s leading aerospace companies, has acquired US-based Gentz Industries in a multi-million pound deal.

This strategic acquisition will double the size of MBAe’s current operations creating an international brand with total revenues in excess of USD80 million per annum. The enlarged group will focus on the supply chain management, manufacture and repair of highly complex machined and fabricated components for global aerospace and defence original equipment manufacturers.
 
Gentz Industries, based in Detroit, Michigan, has an established reputation within the global aerospace industry, manufacturing complex, high-precision engine components for customers including Pratt & Whitney, Hamilton Sundstrand, Rolls-Royce, Mitsubishi Heavy Industries, Volvo Aerospace and the US Department of Defence.
 
The deal will see the merger of Gentz Industries’ 250-strong workforce with MBAe’s three UK sites in Scotland and England, bringing the total number of employees in the group to more than 400.
 
Through its experience in global aerospace and defence supply chains, MBAe will support the acquired business and offer its unique solution to US original equipment manufacturers for the fragmented and underperforming parts of their legacy supply chains. 
 
MBAe, which has operations in Motherwell, Derby and Burnley, completed the sale of its two non-core subsidiaries, MB Faber (in August 2009) and MBAe Oil and Gas (March 2011), as part of its strategy to focus on its key aerospace business, whilst also providing additional capital to support the funding of the US deal.
 
Craig Gallagher, chief executive of MB Aerospace Holdings Ltd, said: “This strategic acquisition will launch MBAe on a path which significantly widens our customer base, providing a highly regarded platform for growth in the key North American market and positions us for even greater success in the industry.
 
“We are delighted to receive the continued backing of our investors LDC alongside our separate banking partners in the UK and US.”
 
John Swarbrick (pictured), senior director at LDC, which backed the management buyout of MBAe in 2007, said: “This acquisition ensures the enlarged group can effectively capitalise on rising global demand for advanced aerospace components, whilst delivering significant value through operational and technological synergies which will be realised by its customers and investors alike.
 
“MBAe’s strong management team, with its heritage in advanced UK manufacturing, continues to develop a leading components provider of scale and this latest transaction represents a notable milestone in the company’s lifecycle.”
 

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