GE bought the branch of Avio, excluding its space unit, for $4.3 billion. The new name for Avio's aviation business will be Avio Aero, a GE Aviation business, and the company will remain located at its headquarters in Turin, Italy. The deal was originally confirmed in December.
Avio Aero has acted as a supplier to GE for almost 30 years, with GE and its joint venture companies providing more than 50% of the company's revenue. With the new acquisition, GE hopes to pursue opportunities in oil, marine products, and power-generation.
David Joyce, GE Aviation's president and CEO, is quoted in a press release as saying he is confident that the company "will build Avio Aero's position as a supplier to other industrial and aviation companies. We are thrilled to further our industrial participation in Italy." Additionally, Avio Aero will benefit GE because the company "operates in four continents and enhances our global capabilities and engineering strength as our production rates rise."