Singapore Technologies Engineering Ltd (ST Engineering) today announced that Vision Technologies Aerospace Incorporated (VT Aerospace) has entered into an agreement to acquire 100% equity interest in Volant Aerospace, LLC (Volant), for a purchase consideration of US$13.1m (approximately S$16m) subject to post closing adjustments. Following the acquisition, Volant will become a wholly owned subsidiary of VT Aerospace. VT Aerospace, which owns four aerospace operating companies in Mobile, Alabama; San Antonio, Texas and Hartford, Connecticut, is a subsidiary of Vision Technologies Systems, Inc. (VT Systems), the US headquarters of ST Engineering.
The consideration was arrived at, after negotiations between the parties, taking into account Volant’s past performance, current profitability and future growth prospects. Subject to customary conditions precedent, the transaction is anticipated to close by the end of December 2012.
The acquisition is in line with ST Engineering’s strategic initiative to develop the cabin interior engineering, manufacturing and repair capabilities for its aerospace sector. An industry-leading provider of commercial aircraft interior reconfiguration and modification services, Volant will strengthen the aerospace sector’s cabin refurbishment business.
Managed as part of the aerospace sector’s global MRO network, Volant will work closely with ST Aerospace’s MRO network and in-house engineering and development centre, as well as its engineering design specialist, DRB Aviation to offer one-stop turnkey cabin retrofit services.
Established in 1988, Volant has been providing aircraft operators, leasing companies, integrators and maintenance, repair and overhaul (MRO) service providers with new and refurbished interior parts and support services. Its core product offering includes passenger service units, space panels, ceiling panels, sidewall panels, overhead bins, lavatories and galleys.
The acquisition will not have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year. The estimated net tangible assets of Volant at closing is US$1.8m (approximately S$2.2m).
Source: Singapore Technologies Engineering Ltd (SGX: ST Engg)
Date: Dec 17, 2012