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L.B. firm merges with AF AerospaceJune 16, 2004 - Long Beach"Execs say move needed as parts making field consolidates."by Felix SanchezStaff writer
LONG BEACH — With rugby balls and English St. George's flags as a backdrop, executives with Airdrome Precision Components and its parent company, Airdrome Holdings LLC, on Wednesday formally announced its merger with an England aerospace manufacturer. With the acquisition of AF Aerospace, Ltd., an aerospace components maker, Airdrome Precision, which counts the Boeing Co. as its biggest customer providing parts for the Long Beach-built C-17 and 717 among others has taken a large step to position itself as a leading supplier, executives said. The merger will boost the international competitiveness of both companies, and comes as the aerospace industry, in particular airplane manufacturing, begins to recover, increasing potential business for firms that make precision parts for aircraft, said James Eaton, president and CEO of Airdrome Holdings, LLC. It also increases the international presence for Airdrome in the European and United Kingdom market, James Beaumont, AF Aerospace general manager told about 60 Airdrome employees gathered for the formal launch at the Airdrome plant near Long Beach Airport. The announcement was attended by local business and political leaders. AF Aerospace currently has long-term contracts with BAE Systems to produce its Hawk and Eurofighter Typhoon, and with Airbus commercial aircraft. Airdrome, which was founded in 1950 and moved to Long Beach in 1966, counts Boeing; Lockheed Martin; Bombardier; Pratt & Whitney; General Electric; Rolls Royce and Honeywell among the firms it provides supplies to for spacecraft, commercial jets, military aircraft, engines and industrial machinery. The merger was formally announced in May at the Rugby, England, home of AF Aerospace, which was owned by British holding company Lentern Manufacturing Holdings, Ltd. A price for the transaction was not released. "Our combined annual sales of precision components make us one of the industry's top performers," Eaton said of the merger, which has been in the works since April 2003. Eaton said the firms are shooting for $25 million in combined sales and have the ability to push $50 million. Eventually, the merged companies could reach $100 million in sales by 2010, Eaton said. Consolidation is critical as manufacturers look to limit its purchases to an increasingly smaller number of suppliers, Eaton and Beaumont said. "The hope is we'll be able to grow both businesses," Eaton said. "This merger is a good example of how good business is in Long Beach," said Randy Gordon, president and CEO of the Long Beach Chamber of Commerce. "This is good news for Long Beach." The merger will mean a stronger employee base, Gordon said. Airdrome has 65 employees in Long Beach down from a high in 125 in 1997 before a downturn in the industry. AF Aerospace employs 110 in Rugby. "We'll be looking at strategies to grow those numbers," Eaton said. Both companies will retain their brand identities and operate as subsidiaries of Airdrome Holdings LLC. During Wednesday's launch announcement, AF Aerospace executives presented local officials with commemorative rugby balls. AF, founded in 1939, is located in Rugby, Warwickshire, England, 100 miles northwest of London and the home of the world's first jet engine and the birthplace of the game of rugby.
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