GE to purchase the aviation business of Avio for USD4.3b

GE agreed (21-Dec-2012) to purchase the aviation business of Avio from Cinven for USD4.3 billion. The transaction is subject to regulatory and governmental approvals. GE will not be purchasing Avio's space unit. Avio's aviation business provides components for GE Aviation and other engine companies. GE stated the acquisition will increase its participation in jet propulsion, "one of the most attractive sectors of the aviation industry". Avio is a provider of low-pressure turbine systems, accessory gearboxes, geared systems, combustors and other components. Avio will strengthen GE's global supply chain capabilities as its engine production rates continue to rise to meet growing customer demand. Avio and its customers will benefit from GE's planned investment in expanding Avio's products and services. Additionally, GE sees excellent opportunity in the acquisition of Avio related to margin expansion. The acquisition also provides opportunity to utilise Avio's capabilities beyond aviation and expand customer relationships. David Joyce president and CEO of GE Aviation said the acquisition is a "great strategic fit with our existing portfolio". [more - original PR]