Following the news last week that United Technologies Corp (UTC) is merging with Raytheon, the trend for consolidation in the aircraft interiors sector continues, with Boeing announcing that it has entered into an agreement to acquire California-based EnCore Group. EnCore is an aerospace interiors company that designs, certifies and produces airplane galleys and seats for airlines and also supplies products and components to Boeing.
According to Boeing, the acquisition of EnCore Group will strengthen its internal capabilities for cabin hardware production and also increase innovation within its cabin vertical – the result anticipates as being greater end-to-end value to airline customers in terms of increased options, better products, and improved capacity and availability. The acquisition includes the entire EnCore Group, including EnCore Interiors, EnCore International and LIFT by EnCore. Boeing previously partnered with LIFT by EnCore on the launch of its Tourist Class Seating, designed specifically to complement the Boeing 737 Sky Interior.
EnCore Group has approximately 700 employees, and is headquartered in Huntington Beach, California, with facilities in California and Mexico. EnCore Group has been a supplier to Boeing since its formation in 2011 and was recognised as a Boeing Supplier of the Year in 2017.
The acquisition of EnCore Group is part of Boeing’s strategy to complement organic growth with strategic acquisitions. Boeing’s vertical integration efforts are intended to provide more options and value to customers by developing and building in-house capabilities in key areas. The completion of the transaction with EnCore Group is subject to customary conditions and is expected to close by the end of the second quarter of 2019.
