Scottish engineering firm MB Aerospace is buying a US-based aero-engine component manufacturer in a “multi-million-dollar deal”.
Motherwell-based MB Aerospace did not specify how much it was paying for Delta Industries, but the Connecticut-based firm’s annual revenues are over $60 million (£40m). It will take MB’s current group turnover to more than $160m.
The acquisition follows MB chief executive Craig Gallagher leading a secondary management buyout of the firm last March, with backing from American private equity firm Arlington Capital Partners.
Gallagher said Delta had been a long-term target for MB, as it was “a perfect fit” with the company’s growth strategy. He said: “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.”
Gallagher – who also led the original management buyout of MB from engineering group Motherwell Bridge in 2007 – said the group was steadily widening the range of products and services it offered its clients, as engine makers were cutting down the number of suppliers they used.
MB manufactures and repairs aero-engine components for customers including Boeing, General Electric, GKN, Mitsubishi, Pratt & Whitney, Rolls-Royce, United Technologies and Volvo Aerospace.
Gallagher added that the acquisition of Delta “brings us 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 US defence end markets that will help support our growth plans”.
He said: “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.”
The Delta acquisition takes the group’s headcount in the US to more than 400, in addition to more than 100 it employs at in Motherwell. It also has smaller sites in England.
Gallagher said the group also looked forward to “exciting opportunities” as the growth of air travel was set to double the number of aircraft in service over the next two decades.