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Boeing to sit comfortably with EnCore deal
Posted on Monday, 17 June 2019 13:54
Boeing is acquiring US-based aerospace interiors company EnCore Group for an undisclosed sum.
As part of the transaction, the buyer will snap up the target’s companies, EnCore International, EnCore Interiors and LIFT.
Sheila Remes, vice president of strategy at Boeing, said: “With this acquisition, we aim to deliver quality and high-value interior offerings that our customers expect and passengers prefer.”
California-based EnCore designs, certifies and produces galleys and seats for airlines.
It has around 700 employees and has been a supplier to Boeing since being founded in 2011.
EnCore Interiors, a division of the main target, manufactures a full range of aircraft furniture and facilities, such as lavatories, class dividers, closets and front row monuments.
The group’s clients include Air Canada, American Airlines and Delta.
A deal with EnCore is part of Boeing’s strategy to support growth via acquisitions, which will help develop its in-house services and provide greater end-to-end value for airline customers.
The transaction is due to close by the end of the second quarter of 2019.
Headquartered in Chicago, Boeing is the world’s largest aerospace company and provider of commercial airplanes, defence, space and security systems, among others.
It has over 150,000 employees worldwide and posted revenue of USD 22.92 billion for the quarter ended 31st March 2019 (Q1 2018: USD 23.38 billion).
Boeing’s plans to buy EnCore represents the second transaction for the purchaser this month, having agreed to invest an undisclosed sum in US-based commercial unmanned aircraft systems provider Robotic Skies on 4th June.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 30 deals targeting interior design service providers announced worldwide since the beginning of 2019.
Shanghai Guosheng Asset Management, via Shanghai Guosheng Haitong Equity Investment Fund Partnership Enterprise, agreeing to buy a 18.5 per cent stake in China-based Shanghai Trendzone Decoration for CNY 300.00 million (USD 43.31 million), was the largest of these.
Other targets include Total Solution Interiors, Kingsmen Indonesia and Modar.
© Zephus Ltd