 "Offsets fetch growing interest from aerospace manufacturers")
Wipro Infrastructure Engineering (WIN), hydraulic solutions provider and part of Wipro Enterprise, today announced that it has signed a definitive agreement to acquire HR Givon (Givon), an Israel-headquartered manufacturer of metallic parts and assemblies for the Aerospace industry, in an all-cash deal.
Givon manufactures structural parts and assemblies which form part of the fuselage, wings and empennage of an aircraft. The 46-year-old company is a certified Tier-1 supplier and counts leading global original equipment manufacturers (OEM) among its customers. It has three manufacturing plants, two in Israel and one at Everett, Washington in the US.
This acquisition will help WIN broaden its product portfolio, expand global footprint and strengthen customer relationships in the Aviation and Aerospace industry.
"Givon has a strong tradition of technical expertise and enduring client relationships. I am confident that Wipro and Givon together will be a significant force in key markets. The synergies from our combined portfolio and locational proximity will be a key enabler to build and nurture successful customer relationships," said Pratik Kumar, Chief Executive Officer, Wipro Infrastructure Engineering.
India is the largest buyer of Israeli military equipment while Israel is the second-largest defense supplier to India after Russia. Independent estimates put the potential offset opportunities at $10 billion and the acquisition of H.R Givon will strengthen WIN's ability to address this market.
WIN sees the Aerospace industry as strategic to its future. In 2013, WIN set up India's first Aerospace actuator manufacturing facility at the Devanahalli Special Economic Zone, near the Bangalore International Airport. Plans are on the anvil to expand into multiple product lines and enter into technology partnerships with leading Aerospace companies.
"We are delighted with the opportunity to join hands with Wipro and this gives us an opportunity to bring to the market an expanded range of offerings," said Ronen Givon, Chief Executive Officer, Givon.
"We see cross-synergies in customer relationships, products and technology that can be leveraged to strengthen our presence in the growing Aerospace sector and become a partner of choice for global OEMs and Tier-1s," noted Sunil Rajagopalan, Business Head (Aerospace) of Wipro Infrastructure Engineering.
The acquisition is subject to customary closing conditions and regulatory approvals, which are expected to be completed in September 2016.
WIN has a global workforce of over 1,700 and has 13 state-of-the-art manufacturing facilities spread across India, Europe, USA and Brazil, making it one of the largest Independent Hydraulic Actuator Manufacturers in the World. Its Aerospace manufacturing facility for Actuators and Precision Engineered Components is located at Bangalore, India.
Givon founded in 1970 by Ruth and Haim Givon as a family-owned business, H.R Givon (Givon) has grown to be Israel's largest manufacturer of metallic aerostructure parts and assemblies.
