May 4, 2007
EVENDALE, OHIO -- GE Aviation announced today that it has completed the acquisition of Smiths Aerospace, a U.K.-based supplier of integrated systems for aircraft manufacturers and components for engine builders. The purchase price was $4.8 billion.
The acquisition broadens GE's offerings for aviation customers by adding Smiths innovative flight management systems, electrical power management, mechanical actuation systems and airborne platform computing systems to GE Aviation's growing commercial and military aircraft engines and services. The combined GE Aviation and Smiths Aerospace revenues in 2006 were $15.6 billion (USD).
"Smiths Aerospace is a natural expansion of our Aviation business," said Scott Donnelly, president and CEO of GE Aviation. "Both businesses have a strong commitment to technology and innovative products and services, and we have a similar customer base. The acquisition brings additional technology growth platforms to GE Aviation and allow us to further help our customers meet their needs."
The acquisition completion coincides with record engine production levels at GE Aviation. Over the next three years, GE Aviation's engine production rates will increase by more than 65 percent due to the expanding orders for the GEnx, GE90 and CFM56 engines. With more than 860 orders, the GEnx is the fastest-selling large commercial engine in GE history. The GE90 production levels are doubling, based on its success powering the popular Boeing 777-300ER and -200LR aircraft. The CFM56, produced by CFM International-a 50/50 joint company between General Electric Company and Snecma (SAFRAN Group), is the best-selling engine in commercial aviation powering narrowbody aircraft today.
Smiths Aerospace, which was part of Smiths Group, has more than 11,000 employees and had $2.4 billion in revenues in 2006. The business has a significant presence on most commercial aircraft, including the Boeing 737 and Airbus A320, as well as many military aircraft. Well-positioned for the future, Smiths has a major presence on new aircraft such as the Boeing 787, Airbus A380 and the Joint Strike Fighter.
Smiths Aerospace products include flight management systems, airborne platform computing systems, power generation, conversion and distribution products, actuation products and systems for flight control, thrust reversers and landing gear applications, various engine components and a global customer services organization.
GE Aviation, an operating unit of General Electric Company (NYSE: GE), is one of the world's leading manufacturers of jet engines for civil and military aircraft. GE also is a world-leading provider of maintenance and support services for jet engines. Visit us at www.ge.com/aviation.