GE has agreed to purchase the Italy-based aviation propulsion components manufacturer Avio S.p.A. for $4.3 billion subject to regulatory and government approval. Avio has been co-owned since 2006 by European private equity firm Cinven and Italian aerospace group Finmeccanica. GE said the acquisition will boost its global supply chain of low-pressure turbine systems, accessory gear boxes, geared systems, combustors and other components as it looks to increase its jet engine production rates to keep up with growing customer demand. The acquisition will not include Avio’s space business. This acquisition is a great strategic fit with GE’s existing portfolio. Avio has technologies, capabilities and outstanding engineers to help grow GE’s business. On the other hand, GE has an excellent corporate presence in Italy. The two companies anticipate a bright future together.
Please wait...
