UK's MB Aerospace Holdings snaps up US-based Gentz Industries to double revenues

The strategic acquisition doubles the size of MBAe's current operations, creating an international brand with total revenues in excess of $80 million per annum. 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. The 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. 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 & Gas (March 2011), as part of its strategy to focus on aerospace, while also providing additional capital to support the funding of the US deal. Gentz Industries, based in Detroit, North Michigan, has an established reputation within the global aerospace industry, manufacturing complex, high precision engine components to an established customer base, comprising some of the leading names in the global aerospace market. Key customers of Gentz include Pratt & Whitney, Hamilton Sundstrand, Rolls-Royce, Mitsubishi Heavy Industries, Volvo Aerospace and the US Department of Defense. Craig Gallagher (pictured and interviewed in video), chief executive of MB Aerospace Holdings Ltd, said: "This multi-million dollar acquisition is part of our long-term strategy to grow our core aerospace business internationally. "Our UK businesses continue to perform well, reporting an annual increase in revenue of 20% for the last four consecutive years, and this acquisition opens up real opportunities for us to grow the business and develop strong long-term prospects in a mature aerospace market. "We see strong synergies between the US and UK operations, with two very distinct customer bases providing the opportunity to leverage the capabilities and strengths of both businesses into new markets, whilst securing employment and supporting the rapid growth of the business on both sides of the Atlantic." MBAe will support the Gentz business through its experience in global aerospace and defense supply chains and will offer its unique solution to US original equipment manufacturers for the fragmented and underperforming parts of their legacy supply chains. Mr Gallagher added: "Our vision is to provide customers with world-class technologies and exceptional service. The newly enlarged group, based in the manufacturing heartlands of America and Great Britain, boasts a proven track-record within the aerospace industry. "This significant investment will double MBAe's revenue steam and will open up exciting opportunities to develop our approach to legacy component sourcing solutions in the world's largest aero-engine marketplace." The market for gas turbines is forecast to grow significantly over the next 20 years, with strong demand for aero-derivative, power generation and industrial gas turbines. Independent forecasters expect more than 30,000 new aircraft to be delivered in the next two decades, with the total size of the airline fleet currently in service expected to more than double. MBAe is run by 38-year-old chief executive Craig Gallagher, who in a management buy-out in 2007 acquired a number of engineering businesses from Scottish industrial business Motherwell Bridge. Following that, strategic tie-ups with a number of key aerospace and defence companie have occurred, with non-core operations sold off.