ST Engineering to Acquire Nacelle Manufacturer for Aggregate Purchase Consideration of US$630m
Singapore Technologies Engineering Ltd (ST Engineering) today announced that the Group’s US subsidiary, Vision Technologies Aerospace Incorporated (VT Aerospace), has entered into a conditional share purchase agreement to acquire a 100% ownership in MRA Systems, LLC (MRAS) from General Electric Company. The aggregate purchase consideration for the Proposed Acquisition is US$630m (approximately S$868m) on a cash-free and debtfree basis, subject to closing adjustments for underfunded pension obligations, other debt-like items, transaction expenses,
net working capital
and other contingent adjustments.
MRAS – established nacelle manufacturer
With 90 years of history in the aviation industry, MRAS is an established Original Equipment Manufacturer (OEM) of engine nacelle systems for both narrowbody and widebody aircraft. Based in Baltimore, Maryland, USA with approximately 800 employees, MRAS has two principal business lines:
(1) design, development, production and sale of nacelles, thrust reversers and aerostructures, and
(2) spare parts sales.
Proposed acquisition is earnings accretive
The Proposed Acquisition is expected to be earnings accretive for the Group and its Aerospace sector. With the production rate for the A320neo reported to increase from the current 55 to 63 units per month by mid-2019, the production ramp-up is expected to improve productivity and drive future revenue and earnings growth for MRAS.
More details in :
1.
http://infopub.sgx.com/FileOpen/SGX%20An...eID=525077
2.
http://infopub.sgx.com/FileOpen/ST%20Eng...eID=525078
3.
http://infopub.sgx.com/FileOpen/Presenta...eID=525076
Specuvestor: Asset - Business - Structure.