Arle and Eyrir in €706m Fokker exit

The transaction, subject to approval by Fokker's works council, trade unions and EU and US anti-trust regulators, is expected to complete in Q4 2015.

It will see engineering multinational GKN wholly acquire Fokker. The buyer, having partnered with Fokker in the past via its GKN Aerospace division, stated it will commit additional funds in the future as Fokker's long-term shareholder.

The deal, financed via a £200m share placement and GKN's previous debt arrangements, will see previous owner Arle reap €500m in cash via the sale of its majority shareholding.

Fokker will remain headquartered in the Netherlands after the sale – it was originally a business unit within the Stork conglomerate, which had picked it up in 1996 after Fokker filed for bankruptcy.

The whole Stork group was then taken private in 2008, when UK GP Candover Investments and Icelandic firm Eyrir Ventures deployed a combined €1.6bn in return for a majority and a minority stake, respectively.

Candover, drawing equity via its €3.5bn fifth fund, would then transfer its shareholding to Arle in 2009.

After divesting the Stork Materials Technology subsidiary to 3i for €150m in November 2010, Stork's shareholders proceeded to split the group's remaining assets into two independent businesses, Stork Technical Services and Fokker Technologies. The split, achieved in the wake of a debt refinancing in August 2012, came one month after an unsuccessful high-yield bond issuance due to lack of demand.

Arle and Eyrir will retain control of Stork's remaining assets – they have yet to comment on when the final divestment is to take place. 

Company
Founded in 1919, Fokker is an aircraft manufacturer focused on lightweight aero structures, landing gear and electrical wiring interconnection systems, among others.

Headquartered in Papendrecht, the manufacturer employs a workforce of 4,900 people in the Netherlands and across additional offices in Belgium, Romania, Turkey, the US, Canada, Mexico, India, China and Indonesia.

In 2014, its four business units – Aerostructures, Electrical, Landing Gear and Services – generated a combined €758m in sales. EBITDA for the period was €76m.

People
Arle managing partner John Arney worked on the deal on behalf of the GP, while Fokker was represented by its CEO Hans Büthker. Nigel Stein and Kevin Cummings are CEO of GKN and GKN Aerospace, respectively.

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