AgustaWestland completes PZL Swidnik takeover

2010-01-31



AgustaWestland, the world’s second-largest helicopter company, has finalised the acquisition of a controlling stake in PZL Swidnik, the state-owned helicopter maker, in a deal worth over PLN 339m (€83m).
The Anglo-Italian firm eventually pledged to invest approximately PLN 2.5bn (€615m) in PZL Swidnik, a substantial improvement over its initial offer of PLN 1bn (€246m) at the opening of the auction and the revised pledge of PLN 2bn (€492m) when it reached a preliminary agreement with the Treasury Ministry in August. Among other things, Agusta aims to create an R&D unit in Swidnik and to increase production of helicopter frames at the plant. The company also undertook not to conduct mass lay-offs for six years. Its offer beat a rival bid from Aero Vodochody of the Czech Republic.
AgustaWestland has cooperated closely with PZL Swidnik for more than a decade, and its orders currently account for 30% of the Polish firm’s output. Over this period, Agusta has accumulated a 6.2% stake in PZL, which will now be lifted to 94%.