Singapore Technologies Engineering (ST Engineering), has announced that its Group's U.S. subsidiary Vision Technologies Aerospace Incorporated (VT Aerospace) has entered into a conditional share purchase agreement to acquire a 100% ownership in MRA Systems, (MRAS) from General Electric Company. The purchase is based on a 100% aggregate purchase consideration of US$630 million which will be on a cash-free and debt-free basis, and subject to closing adjustments for underfunded pension obligations, other debt-like items, transaction expenses, net working capital and other contingent adjustments.
Based in Baltimore, Maryland, USA with approximately 800 employees, and a 90-year history in the aviation industry, MRAS is an established Original Equipment Manufacturer (OEM) of engine nacelle systems for both narrow-body and wide-body aircraft. It currently concentrates on the design, development, production and sale of nacelles, thrust reversers and aerostructures, along with the sale of spare parts.
MRAS has a good combination of mature and next-generation nacelle programs including the A320neo powered by CFM International's LEAP-1A engine, which is Airbus' new-engine option for its A320 aircraft family, COMAC's C919 powered by CFM International's LEAP-1C turbofan engine and COMAC's ARJ21 powered by General Electric's CF34 engine. Similar to the A320neo LEAP-1A nacelle programme, the C919 and Global 7000/8000 are nacelle programmes that MRAS carries out in collaboration with Safran Nacelles.
“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.
