GKN Beefs Up Aero Division With $991M Volvo Unit Buy

Law360, New York (July 5, 2012, 6:17 PM EDT) -- British engineering firm GKN PLC picked up Volvo AB's aircraft engine parts unit in a 6.9 billion-Swedish kronor ($991.2 million) deal that vaults GKN to the top of the worldwide aerospace structures and engine components market, the parties announced Thursday.

The transaction — which consists of a 5.6 billion-kronor equity purchase combined with a 545 million-kronor Volvo Aero pension settlement and 763 million-kronor working capital refinancing — wipes approximately 5 billion kronor of debt off Volvo's books as the Volvo Group, which also operates truck, bus...
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