GE completes acquisition of Avio aviation business

GE announced (01-Aug-2013) it has completed the acquisition of the aviation business of Avio, an Italy-based provider of civil and military aviation components and systems. The purchase price was USD4.3 billion. GE did not purchase Avio's space unit. Avio's aviation business has been renamed Avio Aero, under the GE Aviation business. Avio Aero will retain its headquarters in Turin. GE stated the acquisition furthers its participation and expertise in the areas of mechanical transmission systems, low-pressure turbines, combustion technology, and automation systems. GE will also pursue opportunities for Avio Aero in power-generation, oil, and marine products. Avio Aero operates Italian plants in Turin, Pomigliano d'Arco (Naples) and Brindisi, with 4000 of its 4700 employees in Italy. Avio Aero also has plants in Poland, Brazil, and China. Its customers will benefit from GE's planned investment in these operations to expand their products and services. Additionally, GE sees excellent opportunity in the acquisition of Avio Aero related to margin expansion. Avio has been a strategic supplier to GE for almost 30 years. GE and its JV companies comprise more than 50% of Avio Aero's revenues. An integration team of GE and Avio Aero leaders have been planning since Jan-2013 in preparation for the sale. [more - original PR]