Italian Company Supplies Components For Commercial And Military Jet Engines

GE is reportedly set to announce a deal to acquire Avio SpA, an Italian aerospace company that provides components for military and commercial jet engines, as well as satellite propulsion systems.

But before the deal is signed, the two companies need to determine what to do about the space business, in which GE reportedly has no interest. The Wall Street Journal reports that the deal could be worth about $4 billion.

GE is already one of Avio's largest customers, with about two-thirds of its aviation business related to the U.S. engine manufacturer. GE is reportedly looking to strengthen its supply chain in advance of what it expects will be a major increase in manufacturing over the next five years to fill what it says are record orders.

Avio currently supplies parts for GE's GE90 and GEnx engines, along with parts for helicopters and other products.

The deal is not done. Though an announcement is expected Thursday, sources close to the negotiations say that it could still fall apart at the last minute. The paper reports that GE is not the only suitor for Avio, and that it is possible that one of the other companies could step up with a strong bid.

FMI: www.geaviation.com, www.aviogroup.com/en