Wipro Infrastructure Engineering (WIN) will acquire Israel-based H R Givon, supplier of metallic parts and assemblies to the aerospace industry, in an all-cash deal. WIN, however, did not disclose the size of the deal.
“This acquisition will help WIN broaden its product portfolio, expand global footprint and strengthen its ability to forge deeper customer relationships in the aviation and aerospace industry,” WIN said in a statement.
The acquisition is subject to customary closing conditions and regulatory approvals, which are expected to be completed in September this year.
Givon manufactures structural parts and assemblies that form part of the fuselage, wings and empennage of an aircraft.
The 46-year-old company is a supplier to global firms like Boeing, Hindustan Aeronautics Ltd (India) and KAI (Korea). It has three manufacturing plants — two in Israel and one at Everett, Washington.
India is the largest buyer of Israeli military equipment while Israel is the second-largest defence supplier to India after Russia, the statement said.
“Independent estimates put the potential offset opportunities at USD 10 billion and the acquisition of HR Givon will strengthen WIN’s ability to address this market,” it added.
In 2013, WIN had set up India’s first aerospace actuator manufacturing facility at the Devanahalli Special Economic Zone, near the Bangalore International Airport.
It plans to expand into multiple product lines and enter into technology partnerships with leading aerospace companies.
“We welcome Givon to the Wipro family. 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,” WIN Chief Executive Officer Pratik Kumar said.
The synergies from the combined portfolio and locational proximity will be a key enabler to build and nurture successful customer relationships, he added.
WIN, which specialises in designing and manufacturing custom hydraulic actuators and precision engineered components for aerospace, construction and earth-moving and defence sectors, has a global workforce of over 1,700 people.
Part of Wipro Enterprises, WIN has 13 manufacturing facilities spread across India, Europe, the US and Brazil.
“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,” H R Givon Chief Executive Officer Ronen Givon said.
Founded in 1970, Givon has a global workforce of over 290 people.