Story ID: 469
Ontic Continues Rapid Growth Through New Acquisitions
By: Kerry Lynch
Caption: The company expects an announcement shortly on a deal involving Ultra Electronics, while it closes on latest P&WC acquisition at month's end.
Word Count: 613
BBA's Ontic Engineering & Manufacturing unit's latest agreement for Pratt & Whitney Canada (P&WC) JT15D engine component production is part of an overall strategy to expand its manufacturing activity and support legacy parts through acquisition and license.

Since BBA acquired the Chatsworth, California-based company in 2006, Ontic’s revenues have ballooned from $35 million to $190 million across its operations. Rob Sadler, director of business development for Ontic (Hall 2b, Stand G170), credited this expansion to its relationships with the OEMs and an ability to fill a niche for supporting non-core products.

“We see an increase in demand for our extended-life solutions in the market,” said Sadler. “The OEMs are comfortable with the activity they have on newer variants, but they need to rationalize and move some of the non-core and non-focus product out.  There is a lot of portfolio rationalization going on and it’s very large opportunity space for Ontic.”

What makes it work, he said, is that Ontic supports OEMs rather than competes with them. “We are not a competitive threat. We don’t have anyone designing our own product line. That’s not comfortable for OEMs,” Sadler said. “Our focus is wholly on sustaining engineering talent and supply chain expertise because that's what it takes to keep these older non-core products live.”

With that philosophy, Ontic, which has been in business for more than 40 years, has an expansive portfolio that has grown to encompass 4,500 products and one million component parts for 3,000 military, commercial and business and general aviation customers.

Announced last month, the JT15D parts acquisition is the latest move to increase its portfolio. The acquisition involves an outright purchase of manufacturing rights and encompasses about 80 parts. This marks the third batch for the JT15D, bringing Ontic’s support to close to 300 of those parts. “Beginning with our first engagement with P&WC in 2015, we had the intent to expand Ontic’s component offering for the JT15D,” said Gareth Hall, president and managing director of Ontic. “The JT15D engine aligns with Ontic’s commitment to support legacy products and this further acquisition is a logical progression and expansion of our current services to our OEM partners.”

The additional parts will be manufactured at Ontic’s Chatsworth facility. Aviall will continue to distribute the parts. That acquisition is set to close on June 30.

As it completes that deal, Ontic also continues the to integrate the portion of GE’s avionics business it acquired late last year. That business involves legacy avionics parts form military and commercial aircraft, including electromechanical, barometric, gyroscopes and electronics products. Platforms include the Boeing 737 narrowbody, Sikorsky Sea King and Leonardo AW101 helicopters, Lockheed C130/J transports and BAE Hawk aircraft.

Ontic is folding that business into its Cheltenham, U.K. facility and moving over about 80 employees from GE. “The transfer is in full swing and going very well,” he said.

There are a number of new business opportunities on the docket for Ontic, Sadler said, noting the company is working with Ultra Electronics on a second project, details of which could be revealed during the Paris Air Show. Further, the company has other negotiations in the works that are expected to conclude in the third and fourth quarter of this year.

The company is finding success across platforms, but particularly in the areas of electronics and avionics, he said. But Ontic parts can be found in nearly every section of an aircraft.

 “Our pipeline of projects is as big as we’ve ever seen it,” he concluded.