Vector Aerospace wiring. Photo courtesy of Vector
StandardAero plans to buy Airbus’ Vector Aerospace in a yet-to-be-valued transaction that could combine the operations of the global maintenance, repair and overhaul (MRO) service providers, the latter company said today.
Scottsdale, Arizona-headquartered StandardAero said it has “entered into exclusive negotiations” with Airbus to buy Vector, which the parent has been working to sell for more than 18 months. StandardAero said Vector produced revenues of $704.8 million in 2016. The exclusive negotiations are between StandardAero Aviation Holdings and Airbus SE.
StandardAero said any acquisition deal would be subject to consultations with a workers’ council and customary approvals like regulatory clearances.
In June 2011, Vector was acquired by Eurocopter Holdings, a subsidiary of aerospace and defense giant (and Airbus predecessor) EADS for a reported price tag of more than $600 million. Moves following the acquisition included the transfer of EADS engine MRO holding, SECA, to Vector Aerospace. But Airbus has been streamlining and consolidating its operations, selling businesses to focus on core aerospace and defense activities. Vector has been on the list of operations to be sold since late 2015.
A successful takeover would make StandardAero an MRO giant. It is owned by the private equity firm Veritas Capital, which acquired the company two years ago for a reported price of $2.1 billion. StandardAero employs more than 3,500 in a dozen major facilities in North America, Europe, Asia and Australia, and has 13 more regional service and support centers. Its services include MRO for rotorcraft and aircraft engines, auxiliary power units and components, major airframe alterations and other services, FAA-authorized avionics capabilities, comprehensive engineering services, custom exterior and interior aircraft design, completion and paint.
Vector employs about 2,200 people in 22 locations across Canada, the U.S., the U.K., France, Kenya, South Africa, Australia and Singapore. It provides support for turbine engines, components and fixed- and rotary-wing aircraft.