ST Engineering’s Aerospace Arm Acquires Remaining Shareholding of S-PRO
Singapore, 30 September 2015 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that ST Aerospace Systems Pte Ltd has acquired the remaining 50% stake in Singapore Precision Repair and Overhaul Pte Ltd (S-PRO), from Messier-Bugatti-Dowty (Safran), for a cash consideration of $8.15m.
Following the acquisition, S-PRO will become a wholly-owned subsidiary of ST Aerospace Systems, which in turn is a wholly-owned subsidiary of Singapore Technologies Aerospace Ltd (ST Aerospace), the aerospace Arm of ST Engineering.
The purchase consideration was arrived at, after negotiations between the parties, taking into consideration S-PRO’s past performance, its current profitability and future growth prospects.
S-PRO, based in Singapore, specialises in the repair and overhaul of aircraft landing gear systems and components. It had audited net assets of $24.4m as at 31 December 2014. This acquisition is the result of the Shareholders’ ongoing review of the business strategy and focus for S-PRO. The acquisition aligns with ST Aerospace’s strategy to develop its Singapore base as the centre of excellence for landing gear maintenance, repair and overhaul.
S-PRO has concurrently signed an agreement with Messier-Bugatti-Dowty, to remain as an authorised service centre for the latter's landing gears installed on turboprops, helicopters and regional jets, as well as wheels, brakes and hydraulic components installed on various aircraft types.
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.
ST Aerospace (Singapore Technologies Aerospace Ltd) is the aerospace arm of ST Engineering with a revenue of $2.07b in FY2014. Operating a global MRO network with facilities and affiliates in the Americas, Asia Pacific and Europe, it is the world’s largest commercial airframe MRO provider with a global customer base that includes leading airlines, airfreight and military operators. ST Aerospace is an integrated service provider that offers a spectrum of maintenance and engineering services that include airframe, engine and component maintenance, repair and overhaul; engineering design and technical services; and aviation materials and asset management services, including Total Aviation Support. ST Aerospace has a global staff strength of around 8,000 employees worldwide. Please visit www.staero.aero.
ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenue of $6.54b in FY2014 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index and MSCI Singapore. ST Engineering has about 23,000 employees worldwide, and over 100 subsidiaries and associated companies in 46 cities across 24 countries. Please visit www.stengg.com for more information.
