Kevin O'Toole/LONDON
AVIALL IS TO sell its aerospace-fastener operation, in another step towards its ambition of stripping the group back to its profitable aircraft-parts distribution business.
An agreement was signed at the end of April to sell the fasteners-distribution unit to a new company formed by Aviall's general manager Quentin Boujeaurd.
Aviall says that the Dallas, Texas-based operation lacked "strategic synergy" with the core distribution business since most of its customers are in aerospace manufacturing rather than the airline and general-aviation industry.
A charge of $3.9 million was taken in the first quarter to cover the fasteners-business disposal, leaving Aviall with a net loss of $3.7 million for the three months. The group believes that its losses should improve, however, as the airline recovery begins to show through in stronger demand for its core spares business and as other units are sold. Over the quarter, sales were up by 6%, to above $90 million.
The sale of Aviall's engine-services operation, announced in January, is coming closer to completion following the signing of a definitive agreement with maintenance group Greenwich Air Services. Anti-trust approval is in place, and the deal is expected to be concluded, "later this year", once Greenwich secured financing.
Greenwich, which runs an extensive civil and military engine overhaul and repair service at bases across the USA, plans to raise the cash through a public offering of 4 million shares and a $150 million debt issue.
Greenwich has been growing fast and expects to emerge from the acquisition as one of the world's largest independent engine-maintenance operations. In the first six months to March, the group reports a 43% rise in revenues to nearly $119 million. Net profits doubled, to $4.4 million.
In a further move to focus on the spares market, Aviall has signed an agreement to sell its accessory-services business in Miami. Florida, to Curtiss-Wright. The unit is a certificated repair station for overhaul and repair of complex electronic, electrical and hydraulic systems.
Source: Flight International
