Singapore, 8 June 2012 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that Vision Technologies Aerospace Incorporated (VT Aerospace) has made a successful bid for the Tampa aerospace maintenance facility and certain assets of Pemco World Air Services Inc. (PEMCO), including the Boeing 737 freighter conversion Supplemental Type Certificates, for a purchase consideration of US$49.7m (approximately S$64m) at a bankruptcy auction. VT Aerospace will also assume selected liabilities estimated at US$6.2m (approximately S$8m). The acquisition is contingent upon the approval of the sale by the United States Bankruptcy Court in the District of Delaware on 12 June 2012. Subject to regulatory approvals and customary conditions precedent, the acquisition is anticipated to close in July 2012. VT Aerospace holds the aerospace companies of Vision Technologies Systems, Inc. (VT Systems), the US headquarters of ST Engineering.
The Americas region continues to be a significant market for commercial aviation. With the Tampa International Airport serving as a gateway to Latin America, this acquisition is in line with ST Engineering’s focus to build on its strong presence in the Americas, to better support the growing demand for maintenance and engineering solutions.
The acquired facility will be held under a newly incorporated entity, wholly-owned by VT Aerospace. Occupying approximately 320,000 sq. ft. of hangar and office space at the Tampa International Airport in Florida, the facility is capable of providing maintenance, modification and engineering services for a wide range of wide-body and narrow-body aircraft, with overall annual capacity for about 1.4 million man-hours. It is expected to start operations immediately after closing.
The newly incorporated entity 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. It will be VT Aerospace’s third aircraft maintenance facility in the United States, providing complementary strengths in aviation maintenance and engineering. VT Aerospace currently operates two facilities, namely STA Mobile in Mobile, Alabama and STA San Antonio in San Antonio, Texas, with a total staff strength of about 2,700.
The acquisition 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 holding company for the aerospace operations of VT Systems. A leading aerospace maintenance and engineering division specializing 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 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; ruggedized computers and computer peripheral equipment; specialized truck bodies and trailers; weapons and munitions systems; road construction equipment; and ship design and shipbuilding. Headquartered in Alexandria, Virginia., 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 S$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.