ST Engineering Completes Acquisition of MRA Systems, LLC

Singapore April 18, 2019 Photo(s): By ST Engineering
Aerial view of MRAS facility in Baltimore USA

Singapore Technologies Engineering Ltd (ST Engineering) refers to its earlier announcements made on 13 September 2018, 29 March 2019 and 14 April 2019 (collectively, "Announcements") in relation to the proposed acquisition by its US subsidiary, Vision Technologies Aerospace Incorporated, of a 100% ownership in MRA Systems, LLC (MRAS) (the "Proposed Acquisition").

On 18 April 2019, the Proposed Acquisition was completed at a net consideration of about US$506m (approximately S$683m)[1] in cash, subject to post-completion adjustments for debt-like items and working capital.

MRAS is now an indirect wholly-owned subsidiary of ST Engineering, whose aerospace capabilities now include the Original Equipment Manufacturer business of high-value nacelle systems and replacement parts. With the inclusion of MRAS, ST Engineering has greatly boosted its network of facilities in the U.S. to support regional and global customers. Its extensive capabilities in the U.S. ranges from services in airframe maintenance, VIP completions and aircraft interior refurbishment to now nacelle design and manufacturing.

The acquisition of MRAS is expected to be earnings accretive for ST Engineering.

 

[1] In the earlier announcement made on 13 September 2018, the aggregate purchase consideration for the Proposed Acquisition was stated as US$630m (approximately S$868m) before closing adjustments and net consideration was estimated to be US$440 million (approximately S$606 million) after closing adjustments.