Avio Acquires Philips Aerospace From Royal Philips Electronics

The Avio Group, a world leader in the field of aerospace propulsion, has acquired from Royal Philips Electronics an 80% share of the aeronautical operations of Philips Aerospace, the Eindhoven-based Dutch company that has been active in the aerospace sector since the 1960's and in recent years has specialised in High Tech Machining processes. Parties have granted each other irrevocable option rights respectively to acquire and to sell the remaining 20% of the shares.

Philips Aerospace produces complex components for the world’s leading Aerospace manufacturers such as General Electric, Boeing, Rolls Royce, Lockheed Martin and BAE Systems. The business is primarily based upon 3 competence areas: Advanced Machining, Sheet Metal and Thermal Spraying and employs approximately 100 people. The new company will be named DutchAero B.V.

"This is a strategic investment for us," commented Saverio Strati, CEO of Avio. "DutchAero has developed products and technologies that are complementary to ours. Moreover, DutchAero is responsible for a significant share of the F136 engine for the Joint Strike Fighter, a program in which Avio is also involved. After Avio Polska (Poland), fully owned by Avio, DutchAero is our second investment in Northern Europe, an area where we - intend to be more present. Our main shareholder, Carlyle, has been very supportive of this acquisition."

DutchAero is a supplier to the largest engine manufacturers globally, with whom Avio has also collaborated for a long time on a partnership basis.

"This decision is part of the Philips strategy to continue focusing on our core business," says Harrie Brunklaus, CEO of Philips Corporate Investments. "We are pleased to have found a buyer for the major part of our aerospace business, well suited to exploit the strengths of this business for further growth and expansion into new markets. We are confident that the employees will benefit from this decision as well."

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