Friday, December 21, 2012
GE to Acquire Italy’s Avio for $4.3 Billion
GE has agreed to purchase the Turin, 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 by European private equity firm Cinven and Italian aerospace group Finmeccanica since 2006. GE said the acquisition will boost its global supply chain of low-pressure turbine systems, accessory gearboxes, 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, GE said.
"We look forward to Avio joining the GE family," said David Joyce, president and CEO of GE Aviation. "We have worked closely with Avio for decades, and we anticipate a bright future together. This acquisition is a great strategic fit with our existing portfolio. Avio has technologies, capabilities and outstanding engineers to help grow our business. GE is an excellent corporate citizen in Italy, and we are very excited to grow the relationship."