LONDON (ShareCast) - Engineering group GKN has agreed to buy Airbus Filton manufacturing operations as it beefs up its aerospace operations.
The Filton operation, which was part of a larger cost centre under Airbus ownership, is being acquired for a total of £136m.
An initial payment of £100m will be made on completion with the balance of £36m payable in annual instalments over the years 2010-2015.
GKN chief executive Sir Kevin Smith said, "The acquisition of the Filton wing components and assemblies manufacturing operation is a further exciting step in the development of GKN's Aerospace business."
The deal will also include an order backlog of contracts on all existing Airbus programmes for the Filton operation.
"GKN has also signed contracts for significant work packages to design and produce large scale composite structures for the wing of the new A350 XWB (Extra Wide Body) long haul airliner," GKN said in a company statement.
As a result of the deal GKN's group order book for large civil aircraft structures increases from $4.5bn to around $10bn.
-1.75p ()
Update - 
