Singapore Technologies Engineering Ltd (ST Engineering) today announced that Vision Technologies Aerospace Incorporated (VT Aerospace) has made a successful bid for the Tampa aerospace maintenance facility and certain assets of Pemco World Air Services Inc. (PEMCO), including the Boeing 737 freighter conversion Supplemental Type Certificates, for a purchase consideration of US$49.7m (approximately S$64m) at a bankruptcy auction. VT Aerospace will also assume selected liabilities estimated at US$6.2m (approximately S$8m). The acquisition is contingent upon the approval of the sale by the United States Bankruptcy Court in the District of Delaware on 12 June 2012. Subject to regulatory approvals and customary conditions precedent, the acquisition is anticipated to close in July 2012. VT Aerospace holds the aerospace companies of Vision Technologies Systems, Inc. (VT Systems), the US headquarters of ST Engineering.
The Americas region continues to be a significant market for commercial aviation. With theTampa International Airport serving as a gateway to Latin America, this acquisition is in line with ST Engineering’s focus to build on its strong presence in the Americas, to better support the growing demand for maintenance and engineering solutions.
The acquired facility will be held under a newly incorporated entity, wholly-owned by VT Aerospace. Occupying approximately 320,000 sq ft of hangar and office space at theTampa International Airport in Florida, the facility is capable of providing maintenance, modification and engineering services for a wide range of wide-body and narrow-body aircraft, with overall annual capacity for about 1.4 million man-hours. It is expected to start operations immediately after closing.
The newly incorporated entity will be managed as part of ST Engineering’s aerospace arm, leveraging its aerospace sector’s global maintenance, repair and overhaul (MRO) network, track record and expertise in aircraft MRO and engineering. It will be VT Aerospace’s third aircraft maintenance facility in theUnited States, providing complementary strengths in aviation maintenance and engineering. VT Aerospace currently operates two facilities, namely STA Mobile in Mobile, Alabama and STA San Antonio in San Antonio, Texas, with a total staff strength of about 2,700.
The acquisition is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
Source: Singapore Technologies Engineering Ltd (SGX: ST Engg)
Date: Jun 10, 2012