Kaman to buy Parker Hannifin's Aircraft Wheel & Brake division
25 May 2022
by Marc Selinger
Parker Hannifin provides wheels and brakes for military aircraft, including the CH-53K King Stallion heavy-lift helicopter that Sikorsky is building for the US Marine Corps. (US Marine Corps/Cpl Yuritzy Gomez)
US-based Parker Hannifin Corporation has agreed to sell its Aircraft Wheel & Brake business to US aircraft parts maker Kaman Corporation for USD440 million to address regulatory concerns about its proposed acquisition of the United Kingdom's Meggitt.
The 23 May announcement came about a month and a half after Parker disclosed it was in the process of finding a buyer for the business. The European Commission said in April that the divestiture is needed to preserve competition, as Parker and Meggitt are both “leading global suppliers of wheels and brakes for a range of aircraft types, including military helicopters and drones”.
The completion of the divestiture is contingent on Parker obtaining approval to acquire fellow motion and control system provider Meggitt, a Parker spokesperson said. The Meggitt purchase, which Parker plans to complete for GBP6.3 billion (USD7.9 billion) in the third quarter of 2022, is under review by UK Secretary of State for Business, Energy, and Industrial Strategy Kwasi Kwarteng and the US Department of Justice.
A slate of candidates led by Aerojet Rocketdyne CEO Eileen Drake has won the publicly traded company's contentious election for board of directors, defeating a group led by executive chairman and major shareholder Warren Lichtenstein, the Drake team announced on 30 June.
The eight-member Drake slate received more than 75% of the votes cast, with Drake receiving over 83%, more than any other candidate, the CEO's group wrote in a press release. Drake's slate consists of four incumbent directors, including Drake, and four new directors.
“We look forward to putting this proxy fight behind us so we can continue to focus on creating value for our shareholders,” Drake said.
A spokesperson for the Lichtenstein slate declined to comment.
Meggitt provides ammunition handling systems for military aircraft, including the Apache attack helicopter. (Crown Copyright)
UK Secretary of State for Business, Energy, and Industrial Strategy (BEIS) Kwasi Kwarteng is “minded to accept” the commitments that Parker Hannifin Corporation is offering to ease concerns about its proposed acquisition of Meggitt, the UK government announced on 28 June.
Kwarteng will not make a final decision on Parker's legally binding commitments, or “undertakings”, until a public comment period ends on 13 July, the government said.
Parker, which welcomed the announcement, is headquartered in the United States, and Meggitt is based in the United Kingdom. To address UK national security concerns about the deal, Parker has committed to honouring Meggitt's existing contracts with the UK Ministry of Defence (MoD) and will notify the MoD if Meggitt's ability to supply the ministry changes. Parker has also agreed that UK nationals residing in the UK would continue to make up a majority of Meggitt's board of directors.
Hyundai to supply Philippine Navy with six OPVs in USD573 million contract
28 June 2022
by Ridzwan Rahmat
A computer-generated image of the OPV that will be built by Hyundai Heavy Industries for the Philippine Navy. (Hyundai Heavy Industries)
Hyundai Heavy Industries (HHI) has secured a contract to supply the Philippine Navy with six new 2,400-tonne offshore patrol vessels (OPVs).
The contract, which was signed with the Philippine Department of National Defense (DND) on 27 June, is valued at USD573 million, HHI disclosed in a media statement on the same day.
The OPV will have an overall length of 94.4 m and a width of 14.3 m. It will have a maximum speed of 22 kt, a cruising speed of 15 kt, and a maximum range of 5,500 n miles.
In terms of weapons, each OPV will be equipped with a 76 mm naval gun in the primary position and two 30 mm secondary guns, said HHI. The vessel will have a flight deck that can accommodate one helicopter and unmanned aerial vehicles.
“The OPV was designed by incorporating the Philippine Navy's OPV requirements to the proven Jose Rizal-class frigate platform,” said the company in reference to the service's two Jose Rizal-class vessels, which were also supplied by HHI.
Podcast recording date: 26 April 2022.
Huw Williams of our EMEA news team chairs a discussion focussed on the Russian invasion of Ukraine featuring Amael Kotlarski, Senior Analyst at Janes, Thomas Bullock, Senior Russia and CIS OSINT Analyst a...