Hong Kong Aircraft Engineering Co (HAECO) has agreed to purchase Greensboro, North Carolina-based maintenance company Timco Aviation Services.
The deal is valued at approximately $389 million, subject to “closing adjustments”, a release stated. The sale is expected to close in the first quarter of 2014.
“We are delighted to have agreed to join HAECO, a respected and long-standing leader in our industry with customers that include the top global and US airlines,” Kevin Carter, Timco’s chief executive officer, said in a release.
He adds: “This transaction will open the door to new growth going forward. By making an investment in Timco, HAECO is demonstrating its commitment to strengthening our platform in North America. This exciting and unique opportunity offers our customers access to a broader and deeper platform of products and services while better enabling us to seize on current global growth opportunities related to interiors engineering and manufacturing.”
The deal will allow HAECO to expand its global presence, chief executive officer Augustus Tang said in a release. “Timco holds a premier standing in the industry and maintains a strong track record of safety, innovation and customer service. Together, we will continue our shared focus on exceptional customer service, support of our local communities and a fundamental commitment to safety.”
In addition to providing airframer maintenance, Timco manufactures seats and provides engineering services and parts manufacturer approval parts for aircraft interiors. The company employs 2,750 people in locations around the USA. It has hangars for aircraft maintenance in Greensboro, North Carolina; Lake City, Florida; Macon, Georgia and Cincinnati, Ohio.
Timco also has an engine maintenance station in Oscoda, Michigan and 16 line maintenance stations around the USA.
The HAECO Group operates 18 subsidiaries, including Taikoo (Xiamen) Aircraft Engineering Co (TAECO). It employs more than 14,000 employees in Hong Kong, China and Singapore. The group recorded a decline in profit by 21% to Hong Kong dollars (HK$) 359 million ($46.3 million) for the first half of 2013. The company has cited a shortage of skilled and semi-skilled labour affecting its capacity for airframe and component MRO.