Danish aircraft parts and hardware specialist Satair is expanding its distribution business through a $27.5 million deal to acquire Pall’s North and South American commercial aerospace distribution activities.
Satair chief executive John Staer says the deal means the company, which already represents Pall in Asia, Europe and the Middle East, now has global coverage of Pall’s products and is “the only outlet to the commercial aftermarket”.
The transaction also cements Satair’s US presence, says Staer. The company already has activities in Atlanta, Georgia and Fort Lauderdale, Florida, but the deal gives Satair “inroads into the major US airlines, broadens our product portfolio and gives us a higher level of technical sales capabilities”, he adds.
Jason Steen of Steen Associates, which acted as financial adviser to Satair on the transaction, says: “There is a flurry of activity in the commercial aerospace sector due to the recovery in the cycle. Satair has made a sizeable strategic move at the right time, which will benefit it significantly in the American market.”
Staer agrees that “the market is clearly growing now”, but adds that for this reason, the price of the deal – a $27.5 million total purchase price made up of $22 million for the distribution activities and $5.5 million for related inventory – was high.
A recent increase in share capital and new institutional investors will help Satair pursue future opportunities, says Staer. “We are always out looking for opportunities.” More share issues are in the pipeline, Staer adds. The company is focusing primarily on Asia, but he does not rule out looking elsewhere. Satair would probably look at “similar kinds of deal” to the Pall transaction, Staer says.
Copenhagen-based Satair has subsidiaries in Denmark, France, Singapore, UK and the USA. The company posted revenues of $217 million in 2004-5 and it forecasts an increase to $250 million for 2005-6.
Pall specialises in filtration, separations and purification and achieved revenues of more than $1.9 billion in 2005.
Source: Flight International