GREENSBORO, N.C., October 23, 2013 – TIMCO Aviation Services (TIMCO), a leading global provider of aviation maintenance, repair and overhaul (MRO) services, announced today that a definitive agreement has been signed for it to be acquired by Hong Kong Aircraft Engineering Company Limited (HAECO), a leading global aircraft engineering and maintenance services company based in Hong Kong, for approximately $388.8 million, subject to closing adjustments. The transaction is expected to close in the first quarter of 2014.
The acquisition will create one of the world’s largest airframe MRO service providers based on revenues, number of customers and scope of services and products offered. HAECO and TIMCO together will be able to provide customers with an enhanced range of capabilities and will be uniquely positioned to capitalize on significant growth opportunities, particularly in the aircraft interiors engineering and manufacturing market segments.
“We are delighted to have agreed to join HAECO, a respected and long-standing leader in our industry with customers that include the top global and U.S. airlines,” said Kevin Carter, Chief Executive Officer of TIMCO. “This transaction will open the door to new growth going forward. By making an investment in TIMCO, HAECO is demonstrating its commitment to strengthening our platform in North America. This exciting and unique opportunity offers our customers access to a broader and deeper platform of products and services while better enabling us to seize on current global growth opportunities related to interiors engineering and manufacturing.”
The seller is a company controlled by investment vehicles managed by Owl Creek Asset Management, L.P., an investment manager based in the U.S., which has helped TIMCO grow and position itself for the transaction announced today.
“We have long been looking to expand our global presence and are excited that this acquisition of TIMCO will enable us to unlock exciting growth opportunities for us globally,” said Augustus Tang, Chief Executive Officer of HAECO. “TIMCO holds a premier standing in the industry and maintains a strong track record of safety, innovation and customer service. Together, we will continue our shared focus on exceptional customer service, support of our local communities and a fundamental commitment to safety.”
Over the past 60 years, HAECO has established itself as a global leader in aircraft engineering and maintenance services, serving many of the same leading global customers as TIMCO, including many U.S. airlines. HAECO combines a full range of MRO services, primarily for widebody jets, with an established interior and exterior installation business. It currently has facilities in Hong Kong, Mainland China and Singapore. HAECO holds approvals from 26 regulatory authorities globally, including the United States Federal Aviation Administration (FAA).
The closing of the transaction is subject to customary closing conditions.
Jefferies LLC is serving as exclusive financial advisor to TIMCO and Owl Creek. Brooks Pierce McLendon Humphrey & Leonard, LLP and Brown Rudnick LLP are providing legal counsel to TIMCO.
With the completion of the transaction, TIMCO will be a wholly-owned subsidiary of HAECO, creating one of the world's leading airframe MRO service providers
Kevin Carter will assume full responsibilities as Chief Executive Officer, Ron Utecht will transition from his formal leadership role into a senior advisory role with the company.
TIMCO Purchases Aircraft Maintenance Assets and Will Use Hangar at Cincinnati-Northern Kentucky International Airport for MRO Operations
The company has signed a lease agreement for the hangar previously occupied by PEMCO and will use the facility to grow the existing base of business there serving regional aircraft operators.