Acquisition of DGT
Smiths Group PLC
15 March 2004
News Release
London, 15/03/04
For immediate release
Smiths Group acquires US aerospace business for $102 million
Smiths Group is extending its aerospace business activities in specialist
aircraft engine component fabrication with the acquisition of Dynamic Gunver
Technologies (DGT).
Smiths Group has signed a binding agreement with DGT's owners to acquire DGT for
$102m (£60m), payable in cash with funding from Smiths' existing borrowing
facilities, subject to relevant regulatory approvals.
' This acquisition continues Smiths' strategy of growth in our major markets,'
said Smiths chief executive, Keith Butler-Wheelhouse. 'We continue to seek
excellent opportunities to strengthen our presence through investing in new
technology and new businesses'.
Commenting on this significant expansion in the business, Dr John Ferrie, group
managing director of Smiths Aerospace said, 'DGT provides a strong complement to
our existing engine components business. This acquisition enables us to realise
customer and product synergies across the businesses. Offering complete engine
sub-assembly modules will substantially increase the size of our addressable
markets.'
A privately owned manufacturer of aerospace turbine engine components
headquartered in Manchester, Connecticut, DGT is an industry leader in complex
metal fabrication and welding and laser machining and laser welding technology
for aerospace applications, principally for US military engines.
Examples of the direct synergies between the two companies include flap and seal
assemblies provided by DGT. These complement fabrications currently manufactured
by Smiths for engines powering F15 and F16 military aircraft as well as engines
powering most commercial and regional jet aircraft. The business specialises
in laser cutting, hydroforming, titanium hot sizing, electron beam welding, and
complex multi axis machining.
Smiths Group has market leading positions in aerospace systems, detection
systems, medical devices, mechanical seals, and interconnect products. For
further information, visit www.smiths-group.com
- Ends -
Contacts
Business & Financial Press Bernard Carey +44 (0)20 8457 8403
Caroline Harris +44 (0)20 8457 8306
Trade & Technical Press Jennifer Villarreal +1 616 241 8643
Investor Relations Russell Plumley +44 (0)20 8457 8343
Notes to editors.
DGT's turnover in the financial year ending December 31, 2003 was $110M. DGT's
customers include most major engine prime contractors as well as the US
Government. DGT has been a supplier to Pratt & Whitney for more than 30 years
and is a preferred supplier to both Pratt & Whitney Aircraft and Pratt & Whitney
Canada.
DGT utilises a broad array of technologies to fabricate complex metal aircraft
engine components. DGT specialises in thin wall hot section components made
from exotic high temperature alloys and titanium. These families include
combustors, flaps, seals and augmentor (afterburner) assemblies. DGT's
capabilities will complement Smiths expertise in fabricating hot section
products with high frequencies of replacement for large commercial and military
engines.
The headquarters facility is located in Manchester, Connecticut, with 4
satellite manufacturing facilities nearby The five buildings total 250,000 sq.
ft. and the business has approximately 500 employees. DGT also holds a majority
interest in a manufacturing business in Poland that could offer Smiths
opportunities for lower-cost production and entries into other European
programmes.
Their owners, Howard Miller and Paul Polo, merged the two companies, Dynamic
Metals and Gunver Manufacturing, respectively, in a leveraged recap sponsored by
Jefferies Capital Partners in 1999. Gunver Manufacturing was founded in 1945
and Dynamic Metals was founded in 1963.
Smiths Aerospace, a part of Smiths Group plc, is the leading transatlantic
aerospace equipment company, with more than 9,000 staff and $1.6 billion
revenues split between Europe and North America. The company holds key positions
in the supply chains of all major military and civil aircraft and engine
manufacturers and are world-leaders in electronic and mechanical systems,
precision components and customer services.
This information is provided by RNS
The company news service from the London Stock Exchange
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