Banner Aerospace has agreed to sell its Solair subsidiary to Kellstrom Industries. Florida-based Kellstrom will pay $57 million in cash. The agreement gives Banner the opportunity to purchase Kellstrom stock at a set price.
The transaction must pass anti-trust hurdles, but is expected to be approved by the end of the year.
"This acquisition will place Kellstrom firmly in the market for avionics and high-end after-market rotables," says the company. Founded in 1979 and acquired by Banner in 1986, Solair provides a wide variety of aircraft equipment, including flight data recorders, radar and navigation systems.
Kellstrom Industries overhauls leased aircraft, powerplants and engine parts. The company is also an after-market reseller of engines for helicopters and large cargo transports.
Meanwhile, Fairchild has announced plans to acquire the remaining 15% of Banner Aerospace stock that it does not already own. The transaction is subject to conditions, including approval by Banner's board.
Aside from Solair, Banner Aerospace's main operation is Dallas Aerospace.
Source: Flight International