Singapore Technologies Engineering Ltd said that the Group’s US subsidiary, Vision Technologies Aerospace Incorporated (VT Aerospace), has entered into a conditional share purchase agreement to acquire a 100 per cent ownership in the aircraft part manufacturer MRA Systems, from General Electric Company.
The aggregate purchase consideration for the Proposed Acquisition is US$630m (approximately S$868m) on a cash-free and debt-free basis, subject to closing adjustments for underfunded pension obligations, other debt-like items, transaction expenses, net working capital and other contingent adjustments.
The Singapore-based company, which conducts maintenance and repair operations for airlines, said the deal would allow it to move upstream into the manufacturing and spare parts business for engine nacelles, the casing that houses an aircraft engine.
“ST Engineering keeps a constant lookout to acquire companies in our core business areas or adjacencies that will contribute profitable revenue streams and sharpen our competitive edge. We are excited by the prospects of our investment in MRAS, which is a high-value and complementary business that will enhance our scale, global reach and capture synergies for the Group,” said Vincent Chong, President & CEO of ST Engineering.
MRAS is an established Original Equipment Manufacturer (OEM) of engine nacelle systems for both narrow-body and wide-body aircraft. Based in Baltimore, Maryland, USA, MRAS has two principal business lines – design, development, production and sale of nacelles, thrust reversers and aerostructures, and spare parts sales.
MRAS is the sole supplier of nacelles for Airbus SE A320neos using LEAP-1A engines manufactured by CFM International, a GE and Safran SA joint venture.
“My congratulations to Vincent and the ST Engineering team for their proposed acquisition of our Middle River Aircraft Systems (MRAS) business. I am confident that ST Engineering is the right choice for the future. They are an outstanding partner with a dedication to engineering and operations excellence. We look forward to our continued work with the Group and the Middle River team as an important supplier of nacelles on our propulsion systems for many years to come,” added David Joyce, Vice Chairman of GE and President and CEO of GE Aircraft Engines.
The deal comes at a time when industrial conglomerate GE is slimming down its business to focus on jet engines, power plants and renewable energy.
ST Engineering has been looking to invest in new growth areas, including businesses that offer competitive products through the ownership of intellectual properties and that are synergistic to its core businesses. MRAS is a strong fit, given its expertise and proprietary designs to manufacture nacelles using advanced composites.
The Proposed Acquisition will allow ST Engineering to scale up its aerospace capabilities by moving the company into the OEM business of high-value nacelle components and replacement parts. MRAS’ design, engineering and manufacturing know-how in advanced composite structures is synergistic with ST Engineering’s composite manufacturing capabilities.
“Moving upstream into the business of design and manufacturing of nacelles will allow us to benefit directly from the robust growth of the global aircraft fleet as an OEM, and enable us to serve our customers better through an enhanced suite of products and services. MRAS fits into this strategic intent given its strong portfolio of intellectual properties and programmes supporting high-growth aircraft platform such as the A320neo,” said Lim Serh Ghee, President of ST Engineering’s Aerospace sector.
The Turkish Aerospace Industries (TAI) is highlighting its 5th Generation Jet Fighter KAAN, as well as its T625 Gokbey Helicopter…
Sarsilmaz is bringing its range of weapons to the ongoing show. The company is displaying its defence products from small…
Roketsan is showcasing its well-earned reputation in the development of groundbreaking technologies in rocket, missile and weapon systems at this…
An insight into possible weapon options for the Royal Malaysian Air Force’s (RMAF) new Korean Aerospace Industries (KAI) FA-50 light…
Countries across regions are increasingly staying away from Russian arms since due to the fear of inviting U.S. sanctions, opening…
Fresh after its success in deploying 5G services in India, Vietnam’s Military Industry and Telecoms Group (Viettel) is at the…
Saab is displaying its training solutions for modern training needs at the ongoing DSA. The company is also showcasing its…
Ranhill Defence & Technology a Malaysian provider of defence solutions has partnered with Thai manufacturer of defence vehicles Chaiseri to…
BrahMos Aerospace Private Limited (BAPL), the Indo-Russian manufacturer of cruise missiles is presenting its offering for use on air, land…
STM, a prominent player in the Turkish defence sector is showcasing its naval platforms and tactical mini-Unmanned Aerial Vehicle (UAV)…
Indian provider of anti-ballistic solutions SMPP Private Limited is presenting its range of bullet-proof armour-based solutions at the ongoing show.…
DRB-HICOM Defence Technologies Sdn. Bhd. (DEFTECH) is marking a strong presence at the ongoing with a wide range of offerings…
DRB-HICOM Defence Technologies Sdn Bhd (Deftech), a subsidiary of DRB-HICOM Bhd is now undertaking developmental flight testing of Malaysia’s first-ever…
The Royal Malaysian Navy (RMN) is seeking to procure two assault craft for its special forces unit, Paskal. These assault…
The Malaysian Army is set to bolster its arsenal with additional mortar systems following previous acquisitions from Spain. In 2022,…
Leonardo is displaying a model of the ATR 72 MPA in Royal Malaysian Air Force (RMAF) colours. Two ATR 72…
Pakistan based defence firm Global Industrial & Defence Solutions (GIDS) is showcasing its growing range of defence products at the…
The ongoing edition of Defence Services Asia (DSA) and National Security (NATSEC) Asia 2024 now underway is slated to result…
BAE Systems is highlighting the capabilities of Nautomate, an autonomous control system for uncrewed marine vehicles, by demonstrating it on…
Turkish defence firm, ASELSAN is showcasing a growing range of defence equipment and services at the ongoing show, in order…
Emirates has announced the first set of destinations to be served by its A350 aircraft entering service in September 2024.…
Ocean Infinity, has presented a new MH370 underwater search proposal to Anthony Loke, the Malaysian Minister of Transport in Kuala…
The 18th edition of Defence Services Asia this year (DSA 2024) is expected to be the biggest ever in the…
It is not a coincidence that the Turkish contingent at the show is one of the largest. The Turkish defence…
Aselsan is keen to grow its market presence in Malaysia and is participating in the ongoing DSA with a wide…
"During the DSA event, we will be holding important discussions on what we can do to strengthen the naval defence…
Turkiye’s SDT Space & Defence Technologies has brought a wide range of its products to the ongoing show. Among the…
Leonardo, which is showcasing a wide range of products at the ongoing show, has a longstanding presence in Malaysia of…
Rohde & Schwarz is displaying its turnkey mission-proven solutions to achieve full situational awareness at the ongoing show. The company is showcasing…
Belgium-based FN Herstal is showcasing its portfolio of modern small arms at the ongoing Defence Services Asia (DSA) exhibition and…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2024 GBP all rights reserved.