Feb 7 2008
Vector Aerospace Corporation announced today that its indirect wholly-owned subsidiary, Vector Aerospace International Limited, has entered into a definitive purchase and sale agreement with The Secretary of State for Defence in the United Kingdom (MOD) to acquire the Defence Aviation and Repair Agency (DARA) Rotary Wing and Components Businesses in consideration of (pnds stlg)17 million, subject to a usual working capital adjustment.
The assets included in the transaction include the helicopter repair facilities located at Fleetlands near Portsmouth, England and the helicopter component and repair facilities located at Almondbank, near Perth in Scotland. The transaction is expected to be completed during the first quarter of 2008, and is subject to usual closing conditions.
The Fleetlands facility in Portsmouth provides maintenance, repair and overhaul support for the MOD Chinook (CH-47), Lynx and Sea King helicopters. The Almondbank facilities provide maintenance, repair and overhaul and component support for these helicopter platforms and other platforms within the United Kingdom, both for MOD and other customers.
Vector believes that the skill sets and capabilities of its business align with the DARA businesses being acquired, and that this acquisition provides an attractive expansion platform into new international markets. Vector already contributes to the MOD frontline effort through its UK operations, Sigma Aerospace, at Croydon, England, that supports the RAF C130 K Hercules transport and VC10 tanker fleets.
Donald Jackson, Chairman, President and CEO of Vector, said: "We are very pleased to finalize the definitive purchase agreement and move the process closer to completion. Purchase of the DARA business will offer an attractive opportunity for Vector's shareholders. We appreciate the efforts of DARA and MOD's transition team in moving the matter forward. We look forward to continuing to work with the MOD and, with the support of the existing DARA work force, in providing reliable service to its key helicopter platforms and creating a European centre of excellence in helicopter maintenance."