British engineering company GKN said it agreed to acquire Netherlands-based Fokker Technologies for €706 million ($781 million) including debt, to strengthen its position as a supplier to aeroplane manufacturers.

GKN, historically a supplier of car parts which has over the last two decades moved into aerospace, said on Tuesday that it would fund the deal through a £200 million ($310 million) equity placing and through its existing debt facilities.

The acquisition would be earnings accretive in its first full-year, it said, and was expected to deliver cost savings of 3 per cent of sales by 2018.

GKN said Fokker's position on two big air programmes, the Airbus A350 and the Lockheed Martin F-35 military jet, complements its own position on the programmes, adding that the deal also gives it exposure to electrical wiring systems, and extends its footprint in China.

“Fokker is an excellent strategic and cultural fit which supports our growth strategy. It strengthens GKN Aerospace's market leadership, manufacturing footprint and technology," GKN's chief executive Nigel Stein said in a statement.

Reporting its half-year results, GKN said its pretax profit rose 4 per cent in the period to £307 million ($477.2 million) , helped by growth in its auto-parts supply business, and repeated guidance for 2015 to be another year of growth. – Reuters