Singapore, 17 May 2012 – Singapore Technologies Engineering Ltd (ST Engineering) announced today that further to an earlier announcement on 22 December 2011 regarding the investment of a 50.1% equity interest in EcoServices, LLC (EcoServices) for a purchase consideration of US$33.3m (approximately S$43m), Vision Technologies Aerospace Incorporated (VT Aerospace) has entered into an agreement with Pratt & Whitney to restructure the original terms of the investment and has also completed the investment under those new terms. The restructuring is designed to achieve greater efficiency in the business as it expands internationally.
Under the restructured terms of the investment, VT Aerospace has invested a 50.1% equity interest in EcoServices for a purchase consideration of US$20.0m (approximately S$24.8m). Immediately prior to the closing of the investment, Pratt & Whitney contributed all of the assets of the EcoServices business to EcoServices other than the business’ intellectual property. At the closing, EcoServices entered into an exclusive, perpetual, irrevocable and worldwide license and purchase option agreement with Pratt & Whitney for the use and acquisition of that intellectual property. The purchase option can be exercised anytime after an initial 90-day period following today’s closing. The license and purchase option agreement may be assigned by EcoServices to another company jointly held by VT Aerospace and Pratt & Whitney, or their respective affiliates. The current aggregate cost of the license and purchase option is US$13.3m (approximately S$16.5m). The restructured terms of the investment preserve the economics of the original investment described in the 22 December 2011 announcement. The investment was completed following the receipt of regulatory approvals and fulfilment of other closing conditions.
With a current staff of approximately 50 specialists, EcoServices is the largest provider of advanced technology engine wash services to both commercial and military aircraft operators. EcoServices will be managed as part of ST Engineering’s aerospace arm, leveraging its aerospace sector’s global maintenance, repair and overhaul (MRO) network, track record and expertise in aircraft MRO and engineering. At the same time, EcoServices will benefit from Pratt & Whitney’s extensive experience in advanced engine technologies.
The investment is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
VT Aerospace (Vision Technologies Aerospace Incorporated) is the aerospace operations of VT Systems (Vision Technologies Systems, Inc.). A leading aerospace maintenance and engineering division specialising in aircraft engineering design, maintenance and modification, it owns four aerospace operating companies in Mobile, Alabama; San Antonio, Texas and Hartford, Connecticut. It is one of the largest private employers in Mobile, and the largest private independent MRO employer in San Antonio.
VT Systems (Vision Technologies Systems, Inc.) is an engineering company providing integrated solutions to the commercial and government markets in the aerospace, electronics, land systems and marine sectors. VT Systems’ innovative solutions, products and services include aircraft maintenance, repair and modification; software solutions in training and simulation; satellite-based IP communications technology; network solutions that integrate data, voice and video; rugged computers and computer peripheral equipment; specialised truck bodies and trailers; weapons and munitions systems; road construction equipment; and ship design and shipbuilding. Headquartered in Alexandria, Va., VT Systems operates globally and is a wholly owned subsidiary of ST Engineering. Please visit www.vt-systems.com.
ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenues of $5.99b in FY2011 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, FTSE ASEAN 40 Index, MSCI Singapore and other indices. ST Engineering has more than 22,000 employees worldwide, and over 100 subsidiaries and associated companies in 23 countries and 41 cities. Please visit www.stengg.com.
