BBA splashes out GBP 100m on US buy

BBA'S transformation from sprawling industrial group to focused engineer became almost sexy today as it paid $170 million (GBP 100.6 million) to strengthen its position in the market for servicing executive jets.

The group is buying AMR Combs, the aviation services arm of US giant AMR Corporation, owner of American Airlines.

The acquisition is the latest in five years of frenetic activity under chief executive Roberto Quarta, whose ambitions at one point saw him attempt to buy car brakes group Lucas Industries, now LucasVarity. It is BBA's second American deal since the summer and follows the GBP 32 million takeover of an engine repair operator in August. Quarta said today's deal was an "excellent fit" with BBA's existing aviation division. He went on: "It will allow BBA to roll out further the successful concept of the 'one-stop shop' - providing business aviation services and engine overhaul capabilities to the same customer." AMR Combs owns and operates 11 private jet bases across the US. It made profits of nearly GBP 10 million last year and had assets of GBP 40 million. BBA shares perked up on the news, up 13p to 343 1/2p. AMR Combs is expected to be earnings enhancing in its first full year of ownership.

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