Reinach (pta021/30.04.2021/12:20) - Montana Aerospace, a leading, highly vertically integrated manufacturer of system components and complex assemblies for the aerospace, e-mobility and energy sectors, successfully finalized the acquisition of the French titanium extrusion specialist, Cefival.
The long-established company Cefival, based in Persan near Paris, has developed into a major global supplier of titanium and hard metal profiles and components in the past decades. Apart from global aerospace original equipment manufacturers, many renowned Tier-1 (direct suppliers of OEMs) and buyers from other industries are long-standing customers of Cefival.
Cefival produces titanium alloys as well as special steels such as superalloys. These materials are capable of withstanding very high temperatures and are used in the manufacture of aircraft engines. One of Cefival’s specialities is the manufacture of closed engine rings for commercial aircraft engines by the flash butt welding method.
Cefival experienced a market decline in business due to the COVID-19 crisis and is purchased out of a restructuring. In the year 2020, sales revenues of around EUR 13 million were attained with a staff of 61. Greater vertical integration and synergies between the sites in France and Romania are targeted to support Montana Aerospace’s ambitious restructuring plans for Cefival and help develop the Persan site into a competence centre for the important French market. The vicinity to customers such as Airbus and Safran is expected to benefit the entire Montana Aerospace Group.
"Cefival is an ideal strategic partner for Montana Aerospace due to its expertise in materials and processing for titanium and superalloys. By this acquisition, we are strengthening not only our market position for sophisticated structural parts, but also in the aircraft engine business. Additionally, the location at Persan brings us closer to our highly important French customers," explained Markus Nolte, CEO of Montana Aerospace. Michael Pistauer, CFO of Montana Aerospace:"Montana Aerospace has made enormous investments to ensure that the Group is well-prepared for a strong restart out of the COVID-19 crisis. With the Cefival acquisition, we are continuing our growth course with the goal of ensuring expansion also over the long-term."
As part of the integration process Cefival was incorporated into the UAC Group (Universal Alloy Corporation) of Montana Aerospace and its vertical value chain and is in the process of being renamed UAC Cefival.
Key customers were closely involved in the drafting of the restructuring plan and they are optimistic about the future development of UAC Cefival.
"Cefival is a supplier of strategic components to Safran such as engine rings. We welcome Montana Aerospace as a new partner and are looking forward to strengthening the relationship." (Safran Group)
Airbus also salutes Montana Aerospace for its latest acquisition, expanding the company's portfolio in metal processing.
An enormous investment programme is the basis for strengthening UAC Cefival. At the Persan site, investments were made into a 2,000-ton extrusion press and other key equipment along the value chain. The company aiming to continually enlarge its range of products.
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ABOUT MONTANA AEROSPACE AG
Montana Aerospace AG is a division of MONTANA TECH COMPONENTS AG and employs approximately 4,800 employees worldwide at 28 company locations. The industrial group is a leading manufacturer of system components and complex assemblies for the aerospace industry and has global development and production capacities. The company is specialized in the conception, development and production of ground-breaking technologies on the basis of aluminium, titanium, composite materials, copper and steel used in the industries of aerospace, e-mobility and energy. Net sales of the Group were EUR 614 million in the financial year 2020 and adjusted EBITDA was EUR 45 million. In the financial year 2020, Montana Aerospace increased contracted sales [ 1 ] ( # _ftn1) in the aerospace and automotive segments from EUR 3.0 billion to EUR 4.2 billion (as at 31 January 2021).
Cefival located in Persan near Paris patented a new and unique new production technology in 1941: glass lubricated steel extrusion. Today, Cefival is a global leader in the production of near-net profiles made of titanium alloys superalloys, stainless and special steels. The company specialises in highly stressed aerospace applications and supplies over 500 customers in the aerospace industry, the energy industry, the mechanical and engineering industries as well as in the field of architecture. The long-established company employs state-of-the-art finishing and processing machinery for stretching, cutting, milling, welding and shaping processes. With the help of alloy-specific heat treatment methods, the mechanical and metallurgical quality of the products is optimised for the respective application. In April 2021, Cefival was integrated into the UAC Group (Universal Alloy Corporation) within Montana Aerospace and renamed UAC Cefival.
ABOUT MONTANA TECH COMPONENTS AG
Montana Tech Components AG, founded in 2006, is a globally active industrial group focusing on key technologies in future markets. The companies of the growth-oriented group hold a leading position in their field of activities. By focusing on selected key technologies, market leadership, and continuous innovation, MTC pursues a sustainable growth strategy in its divisions – VARTA AG, Aluflexpack AG and Montana Aerospace AG. The Group generated sales worth EUR 1.72 billion in 2020 and is represented at 83 locations in 34 countries worldwide. It currently employs a total of around 10,700 highly qualified staff members.
[ 1 ] Contracted sales are calculated by multiplying the value of parts and shipsets to be delivered to our customers under a long-term supply contract over the contract term at the expected build rates which are based on forecast information and estimates provided by customers, as adjusted by our management estimates. As of 31 January 2021, EUR 3.9 billion is attributable to our aerospace business and EUR 0.3 million to our automotive/e-mobility business. For 2020, the figure shown represents the estimate for the aerospace business for 31 March 2020 (EUR 2.9 billion) and for the automotive/e-mobility business for 31 December 2019 (EUR 0.1 million); the different points in time result from the fact that harmonised figures were not available for a common period.(end)