Aequs acquires Paris-based T&K Machine1 min read . Updated: 15 Jun 2015, 08:56 AM IST
T&K acquisition will help Aequs to expand its footprint in North American market, says Aravind Melligeri, Aequs chairman and chief executive
“T&K acquisition will help Aequs to expand its footprint in North American market. We never worked with Boeing Co. of the US or Kansas-based first-tier aero structure manufacturer Spirit AeroSystems, Inc. T&K will help to add these companies to our clientele," said Aravind Melligeri, Aequs chairman and chief executive, in a phone interview.
According to its website, T&K Machine has been supplying machined parts and assemblies to the aerospace industry since 1968 and has a wide range of manufacturing capabilities.
A joint announcement on the acquisition is expected on 15 June at the Paris Air Show.
Indian firms going out and acquiring capabilities is increasingly a trend and we should see much more of this in the near future, said Rahul Gangal, partner at Roland Berger Strategy Consultants, adding such acquisitions help companies acquire complementary capabilities and assets at attractive valuations.
“This also indicates an increasing integration of Indian companies in an industry that has extremely globalized supply chains," Gangal said.
Indian aerospace and defence will grow at a compounded annual growth rate of 13.6% to become a $70 billion market by 2018, according to Grant Thornton India Llp, a consultancy.
Aequs, founded in 1997 as an engineering services firm called QuEST Global Manufacturing based out of the US, started manufacturing aerospace and defence components in 2006. It has a presence in the aero structures (wings, air frames, etc.), aero systems (hydraulic valve actuators, etc.) and landing-gear segments of aerospace manufacturing, and supplies to all major aerospace and aviation companies.
T&K is a US export control approved facility with 65 employees, which will help Aequs in the North American market.
“This acquisition will help us to offer local manufacturing capacity and better logistics for our North American customers. We will be able to support our customers locally when necessary," he said.
Melligeri said Aequs will now offer its global aerospace machining platform of over one million hours to Boeing and its tier-1 suppliers across the world.
In January, Melligeri said Aequs had earmarked an investment of $100 million to expand into more segments, set up factories in the US and Europe and triple its manufacturing capacity to generate revenue of $200 million by 2020.