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VT Aerospace crafts deal for MRA
Posted on Thursday, 13 September 2018 13:36
Vision Technologies Aerospace (VT Aerospace) is acquiring MRA Systems from General Electric (GE) for USD 630.00 million to move into new growth areas, such as high-value nacelle components and replacement parts.
The base purchase price translates into a multiple of 10.0 times earnings before interest, tax, depreciation and amortisation (EBITDA) and 1.2 times revenue for the 12 months ended 30th June 2018.
With 90 years of history in the aviation industry, MRA is an established original equipment manufacturer (OEM) of engine nacelle systems for both narrowbody and widebody aircraft.
Based in Baltimore, Maryland, with 800 employees, the company has two main business lines: the design, development and production of streamlined casing, thrust reversers and aerostructures; and spare parts sales.
It represents a chance for Singapore Technologies (ST) Engineering, through its US subsidiary VT Aerospace, to scale up its aerospace capabilities.
The nacelle system segment is expected to be worth USD 2.40 billion by 2025, within the USD 22.00 billion overall maintenance, repair and overhaul (MRO) components market.
MRA’s “design, engineering and manufacturing know-how in advanced composite structures is synergistic with” its existing composite manufacturing capabilities.
ST Engineering is a global technology, defence and engineering group specialising in the aerospace, electronics, land systems and marine sectors.
The group employs about 22,000 people across offices in Asia, the Americas, Europe and the Middle East, serving customers in the defence, government and commercial segments in more than 100 countries.
Its aerospace sector operates a global MRO network in the Americas, Asia Pacific and Europe, and offers aviation materials to airframe, engine and component services.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 790 mergers and acquisitions targeting aerospace parts and products makers and engineering services providers announced so far this calendar year.
The purchase of MRA is the tenth-largest deal within this segment of 2018 to date.
© Zephus Ltd