SINGAPORE - Defence contractor Singapore Technologies Engineering on Thursday (April 18) completed its acquisition of a US aircraft engine parts maker for US$506 million (S$683 million) in cash.
Its US subsidiary, Vision Technologies Aerospace Incorporated, bought General Electric's MRA Systems (MRAS), making the latter an indirect wholly-owned subsidiary of ST Engineering.
The net consideration amount is subject to post-completion adjustments for debt-like items and working capital.
In an earlier announcement on Sept 13, 2018, the net consideration had been estimated to be at US$440 million after closing adjustments based on an aggregate purchase consideration of US$630 million before closing adjustments.
ST Engineering had previously said that the acquisition would scale up its aerospace capabilities in the US by moving it into the original equipment manufacture of high-value nacelle parts, in a hunt for new growth areas to invest in.
Based in Baltimore, Maryland, MRAS is the sole supplier of certain nacelle equipment for GE engines powering the Airbus A330, Boeing 747-8, 767, Comac ARJ21 and Embraer 190. An engine nacelle is the casing that houses an aircraft engine, providing efficient aerodynamics during flight and thrust reversal capabilities. It has about 800 employees.
ST Engineering received clearance for the acquisition from the Committee on Foreign Investment in the United States (CFIUS).
The company, which is 51 per cent-owned by state investment firm Temasek Holdings, will conduct its annual general meeting on Thursday afternoon.
ST Engineering's mainboard-listed shares closed at $3.86 on Wednesday, up one cent.