Héroux-Devtek acquires UK-based landing gear manufacturer
APPH Limited to add four plants and 440 employees to Québec-based aerospace firm.
Héroux-Devtek Inc. announced it has acquired U.K.-based APPH Limited and U.S.-based APPH Wichita, Inc. as well as subsidiaries of BBA Aviation Plc. Headquartered in Runcorn, United Kingdom, APPH specializes in the design, engineering, manufacturing and aftermarket support of landing gear and hydraulic systems and assemblies for fixed and rotary wing civil and military aircraft.
As part of the acquisition, Héroux-Devtek will gain four plants located in the United Kingdom and one plant in Wichita, Kansas, with a combined workforce of approximately 400 employees, including a design engineering department staffed with 40 professionals. APPH’s main design programs include landing gear systems for the Hawk, SAAB Gripen, AW101, C27J Spartan and EC175 aircraft.
For the 12-month period ended December 31, 2013, APPH generated revenues of approximately US$77 million and an adjusted EBITDA of approximately US$12.5 million. The purchase price, net of about US$4 million of cash acquired, is approximately US$124 million. The transaction is being financed with the Corporation’s available cash and existing credit facilities.
On a pro forma basis, Héroux-Devtek’s revenue mix is expected to be approximately 54% military and 46% commercial, with about 25% of sales originating from proprietary products and 75% from built-to-print activities. Furthermore, around 32% of sales should be derived from aftermarket products and services while 68% would be generated by OEMs.