Norwegian Kongsberg Automotive (KA) announced on Feb. 27 that they agreed to sell its aviation unit to Triumph Group Inc for EUR 20m.
Kongsberg’s aviation unit consists of cable control systems for military and civil aircraft, located in Basildon, UK and Heilingenhaus, Germany.
KA’s CEO, Olav Volldal stated the following; “We are very pleased with the transaction and especially that a well respected player such as Triumph Group is the acquirer of our aviation business. We believe that the Triumph Group will be able to utilize the full potential in this business making the company a stronger supplier of aerospace systems and components.”
KA has previously announced that it would divest from non-strategic activities and this transaction is a part of that strategy. Not only will the sale improve the cash-balance, it will also enable KA to have an even stronger focus on its core business segments in the automotive- and truck industry.
The company’s aviation unit has an estimated annual turnover of EUR 9 m and employs 30 people. The deal is expected to close by the end of March 2009, subject to approval from the British and German aviation regulatory bodies.