Acquisitions and alliance agreements

Citation

(2001), "Acquisitions and alliance agreements", Aircraft Engineering and Aerospace Technology, Vol. 73 No. 3. https://doi.org/10.1108/aeat.2001.12773cab.035

Acquisitions and alliance agreements

Acquisitions and alliance agreements

Keywords: BBA Group, Gulfstream Aerospace, Mergers and acquisitions

BBA Group plc informs us that it is entering into a series of acquisitions and alliance agreements with Gulfstream Aerospace Corporation. Under these agreements, BBA will acquire Gulfstream's engine overhaul and repair business operations at Dallas, USA, and Gulfstream will separately purchase the assets and assume operation of BBA's regional maintenance centers (RMC's). Net consideration for this transaction, payable by BBA in cash, is $43m. Closing is subject to regulatory approval and change of control consents.

The Gulfstream engine overhaul and repair business, which will become part of BBA's Dallas Airmotive engine services subsidiary, provides factory authorised service for the Honeywell TFE731, ALF502, and the General Electric CF34 series engines, as well as auxiliary power units (APUs) produced by Honeywell and Sundstrand.

Although BBA will no longer own the RMC airframe and avionics service business in Dallas, Las Vegas, Minneapolis and West Palm Beach, which will now be operated as Gulfstream facilities, BBA will continue to make available the full range of PMC services to its customers through its alliance with Gulfstream.

BBA and Gulfstream will also enter into a strategic marketing and product support agreement which will allow both to take full advantage of the synergies that exist between the two companies and maximise the benefits to their customers. The companies will also market jointly their respective engine and aircraft support capabilities.