Schivo has expanded its aerospace operations with a major cross-border deal to acquire Londonderry-based Maydown Precision Engineering (MPE).
The acquisition by the Waterford company has created a major indigenous supplier to the global aerospace manufacturing industry on the island of Ireland – one whose customers work on Airbus, Boeing, and Bombardier programs.
Schivo has bought the business and assets of MPE, based at the company’s 12,000 sq.m manufacturing facility near Londonderry.
MPE’s 133-strong workforce will continue to be based there and the company’s contracts with its customers will continue to be fulfilled from there.
The expanded Schivo group will now employ more than 360 people and have a significant presence within the Medical Technologies, Aerospace, and Oil & Gas sectors.
The acquisition of MPE further expands Schivo’s interests into the buoyant aerospace engineering sector. Aerospace manufacturing has been growing on the island of Ireland, with the market valued at an estimated 1.3billion euros. MPE supplies key components of the aero-structure, aero-engine, nacelle (engine housing) and actuation systems for leading aircraft manufacturers.
The most recent Flightglobal Fleet Forecast 2014-2033 predicted that 36,820 commercial jets and turboprops worth almost $2.6 trillion will be delivered over the next 20 years.
Schivo owner and CEO Seamus Kilgannon: “This deal shows that Schivo is willing to invest in the long-term future of the company. This is a significant expansion into the aerospace industry that will enable Schivo to benefit from the expected global growth of the aerospace market.
“MPE has long-standing experience of successfully servicing the aerospace market and is an excellent strategic fit for Schivo. This acquisition considerably strengthens and broadens Schivo’s key technical engineering expertise in supplying the aerospace market, and will
increase the organisation’s sales and revenues from the sector.
“This deal creates a significant indigenous engineering supplier to the global aerospace industry on the island of Ireland – one whose customers work on Airbus, Boeing and Bombardier programs.”
MPE Managing Director Sean Phelan said: “This deal represents a new chapter in MPE’s story. It secures the future of the company and presents tremendous opportunities for us.
“For nearly 30 years we have supplied the aerospace industry. By becoming part of a larger organisation, MPE will be able to better support its customers. It will enable greater investment and commitment to customers in the future.”
“The scalability and efficiencies that we can now bring to existing and prospective clients has the potential to grow the sector further on both sides of the border.”
EY Corporate Finance acted as lead advisors to Schivo on the transaction.