Vought Name Returns to Aerospace Industry with Carlyle Group Purchase of Northrop Grumman Aerostructures Business
DALLAS/FARNBOROUGH, England, JULY 24, 2000 - The sale of Northrop Grumman Corporation's (NYSE:NOC) commercial aerostructures business to The Carlyle Group was closed at 12:01 a.m. EDT today. The business will operate as an independent company under the name, Vought Aircraft Industries, Inc., with locations in Texas, California, Georgia and Florida.
The new company marks the return of a respected name in the aerospace industry. Chance Milton Vought, considered a pioneer in the U.S. aircraft industry, founded the original Vought Aircraft Company in 1917. Legacy companies have been producing aerostructures ever since.
The new company combines the best aerostructures design and manufacturing capabilities of three former aerostructures operations: Vought Aircraft Company, Northrop Corporation and Grumman Corporation. The commercial aerostructures businesses of these three firms were integrated into one operating unit as part of the formation of Northrop Grumman Corporation in 1994.
Vought is one of the world's largest aerostructures subcontractors with estimated annual sales of over $1 billion. Its major customers include The Boeing Company and Gulfstream Aerospace Corporation.
Current commercial products are structures for the Boeing 737, 747, 757, 767 and 777 aircraft including fuselages, empennages, wing center sections, flight control surfaces, doors and nacelle components and the entire integrated wing for the Gulfstream V business jet. The firm also produces nacelles and nacelle components for both business/regional jets and large transport aircraft.
Vought is a major subcontractor to Boeing on the C-17 Globemaster III, the U.S. Air Force's newest transport aircraft. Vought produces the nacelles, horizontal and vertical stabilizers, and universal aerial refueling receptacle slipway installation panel. Other military products include the E-2C Hawkeye outer wing panels, S-3A Viking wing fold, V-22 fuselage subassemblies and the wings for the Global Hawk unmanned air vehicle.
The new company will be led by Gordon Williams, President and Chief Executive Officer, and Bill McMillan, Chief Financial Officer. Both men served in similar roles during the creation of the integrated aerostructures business under Northrop Grumman.
With the closing of the sale, Williams takes the helm of a company he knows from the inside out. However, he emphasizes that operations will not be "business as usual."
Facing stiff competition in the global aerospace industry, the aerostructures business has been challenged to maintain profitability in recent years.
Williams plans to use the company's strengths to succeed in the global marketplace by setting Vought apart from the competition.
"Our company name carries with it a tradition of excellence," Williams said. "The Vought legacy of achievement in aerospace design, manufacture and technology innovation has made us what we are today æ the premier aerostructures supplier in the world.
"We will build on that success by keeping our focus on the customer, product quality and technical innovation. We will use our innovation to reduce our costs through Lean implementation and continuous improvement," the new CEO added. "Our success depends upon our ability to compete in the global marketplace - not just in terms of product cost, but also in our ability to anticipate our customers' needs in the future and to invest in the capabilities to meet them.
"So what we intend to do is build on that tradition of excellence by focusing on the future products and requirements of our customers and potential customers in the international aerospace marketplace," Williams said.
Williams and key members of his new management team are attending the Farnborough 2000 International Air Show in the United Kingdom this week. They will meet with customers, potential customers and suppliers to initiate the Vought Aircraft Industries strategy.
About Vought
Vought Aircraft Industries, Inc., is headquartered in Dallas, Texas, the site of its extensive fabrication and major assembly operations. The firm operates product-focused assembly sites in Hawthorne, California; Perry and Milledgeville, Georgia; and Stuart, Florida, and has a combined employee population of approximately 6,000 people.
About The Carlyle Group
The Carlyle Group, a private global investment firm, based in Washington, D.C., currently manages more than $10 billion of capital through focused industry groups including: Aerospace & Defense, Environmental Services, Healthcare, Information Technology, Internet, Real Estate and Telecommunications.
