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- Finmeccanica And GKN Sign Heads of Agreement on Helicopter Joint Venture (Mar. 18) - George Robertson Welcomes GKN Westland - Agusta Merger (Mar. 18) - GKN And Finmeccanica Enter Exclusive Negotiations On Helicopter Divisions (16-Apr. 1998) - Bell Heli
The following press release was issued jointly by GKN plc and Finmeccanica SpA on Thursday, March 18 1999:
GKN plc of the UK and Finmeccanica S.p.A. of Italy have signed a Heads of Agreement on the formation of a 50:50 joint venture company which brings together their respective helicopter activities - GKN Westland Helicopters and Agusta.
This follows an announcement in April last year that both companies were entering into exclusive negotiations. GKN and Finmeccanica are now commencing detailed due diligence with a view to entering into definitive agreements as soon as practicable. Completion of the transaction will be subject to certain regulatory approvals.
The board of the joint venture will be composed of an equal number of GKN and Finmeccanica representatives.
David Wright, an Executive Director of GKN and Managing Director of its Aerospace portfolio, will be the first Chairman. Amedeo Caporaletti, currently President and Chief Executive of Agusta, will be the first Chief Executive. Richard Case, currently Chief Executive of GKN Westland Helicopters, will be the first Managing Director.
Both Ing. Caporaletti and Mr. Case will be members of the board of the joint venture.
It is intended that the joint venture will encompass:
· GKN Westland Helicopters, the transmissions business of GKN Westland Aerospace and GKN's 50% interest in Aviation Training International Limited, the joint venture with Boeing of the US to provide training support to the British Army's Apache fleet.
· The Agusta helicopter business, including its transmissions and structures businesses, Agusta's share of the joint venture for the NH90 programme and Agusta's share of the joint venture with Bell Helicopter Textron of the US, which includes the BA609 tilt rotor aircraft.
The GKN and Finmeccanica assets will be contributed on a broadly debt and cash free basis.
In a joint statement GKN and Finmeccanica said:
"Westland and Agusta are highly successful businesses in their own right. Together they will form one of the world's premier helicopter companies with a broad range of civil and defence products, a strong order book and an exciting programme of new products and technologies in advanced stages of development.
"The two companies are well known to each other - their management teams have worked together successfully on the EH101 and they will bring complementary strengths to the joint venture. GKN Westland has a strong military focus with particular strengths in project management. Agusta, in addition to its exposure to defence through several military programmes, has a powerful reputation and strong track record in the civil market and brings significant marketing expertise.
"The enhanced technical and marketing power of the new company and the expected synergies in engineering, procurement and component manufacturing will create significant value for GKN and Finmeccanica shareholders.
"This agreement marks another relevant step forward in the consolidation of the European aerospace and defence industry and confirms the full involvement of Finmeccanica and GKN in the process of restructuring and integration."
- Finmeccanica And GKN Sign Heads of Agreement on Helicopter Joint Venture (Mar. 18) - George Robertson Welcomes GKN Westland - Agusta Merger (Mar. 18) - GKN And Finmeccanica Enter Exclusive Negotiations On Helicopter Divisions (16-Apr. 1998) - Bell Helicopter Announces Joint Venture with Agusta (Sept. 9, 1998) Finmeccanica and GKN sign Heads of Agreement on helicopter joint venture (Mar. 18)