SIA Engineering Company (SIAEC) and joint venture partners Pratt & Whitney (P&W) and China Airlines, will fully divest Asian Compressor Technology Services (ACTS) to MB Aerospace Newton Abbot.
Based in Taiwan and founded in 1995, ACTS is a joint venture between SIAEC (24.5%), P&W (51%) and China Airlines (24.5%). It provides repairs and overhauls of compressor stators, shrouds and honeycomb seals and segments for PW4000, PW2000, International Aero Engines V2500 and CFM International CFM56 engines.
SIAEC, P&W and China Airlines will sell their respective stakes in ACTS to MB Aerospace for a total $60 million
"SIAEC and P&W have been jointly reviewing our portfolio of joint ventures for consolidation and growth. This is part of SIAEC’s restructuring initiatives to focus on growth areas and build next generation aircraft capabilities," says the MRO in a statement.
The sale of SIAEC’s stake in ACTS is expected to result in a gain of approximately S$14.3 million ($10.5 million) for the MRO firm for the financial year ending 31 March 2018.
Meanwhile, MB Aerospace says the acquired firm will trade as MB Aerospace ACTS (TAIWAN) once legal completion is finalised, estimated to be in January 2018.
“This acquisition greatly expands our capabilities in the repair sector and gives us a crucial geographical presence in the fast-growing Asian market," says Craig Gallagher, MB Aerospace chief executive. "Expanding our capabilities in the turbine and compressor sections of the aero-engine is a key strategic objective for MB Aerospace and we have ambitious plans for further growth and investment in both Taiwan and Newton Abbot."
Gallagher adds that ACTS' rotating components will now operate in synergy with MB Aerospace's high-volume compressor and turbine component manufacturing facility at MB Aerospace Newton Abbot in the United Kingdom.
“ACTS provides a tremendous platform for further growth in Asia - we are buying a high-performing company that has been operating at UTC Supplier Gold status for over 70 consecutive months. This... will give MB Aerospace a solid footing to serve global aero-engine customers... with fast turnaround times and cost-competitive repairs on critical rotating components in the hot section of the engine."