Airbus has made an offer to buy Danish aircraft parts supplier Satair for Danish krone (DKr) 2.6 billion ($504 million).
The EADS subsidiary plans to make the acquisition through a public offer, offering Satair shareholders DKr580 for each share and warrant holders DKr378.66 for each warrant they hold.
Satair's board has recommended the transaction to its shareholders, and Airbus expects to complete the transaction in the third quarter of this year.
When that is done, Satair will retain its brand within Airbus and work closely with the airframer's material management division, the companies said in a statement.
"This acquisition facilitates the growth of Airbus' material management division and is an opportunity to develop new services through the combined entity in both the civil and governmental markets," said Airbus.
It added that Satair's strengths in the supply and distribution of aviation parts and services will supplement its global maintenance, repair and overhaul (MRO) business.
Didier Lux, executive vice-president of Airbus customer services, said that Satair's "wide product and service range, established network of suppliers and customers, strong growth and proven financial track record" made then an attractive acquisition target.
"Leveraging Satair's lean operating model and diversified product range with Airbus' own parts distribution business, its supplier and customer relationships, and global footprint will help to further improve Satair's growth perspectives and allow Satair to position itself among the world's leaders in this market," added Lux.
Satair expects $403 million of revenues and $36 million of earnings before interest, tax, depreciation and amortisation in the fiscal year ended 30 June.
"This acquisition perfectly fits EADS' Vision 2020 strategy by increasing the services business and our international presence. It is also an excellent investment opportunity for Airbus, as Satair has proven resilient during the financial crisis and has been able to show a continuous profitable growth," said Marwan Lahoud, EADS chief strategy and marketing officer.
"Further to the recent acquisition of Vector Aerospace, EADS is actively pursuing and delivering its growth service strategy through internal and external growth. Satair is a first step towards a one stop shop integrated offering in the material management activity, which is an essential part of EADS' and Airbus' services growth strategy to fulfil our Vision 2020".
Source: Air Transport Intelligence news
