Fast-expanding Dubai Aerospace Enterprise has overcome possible political objections to complete a $1.9 billion acquisition from Carlyle Group of North American maintenance, repair and overhaul providers Standard Aero and Landmark Aviation.
The purchase - first mooted in March - takes DAE into civil and military engine and business aviation maintenance for the first time, and will be a springboard to expand the conglomerate's MRO activities into growth markets around the world, says chief executive Bob Johnson.
DAE already owns a share of SR Technics as part of a Gulf consortium that purchased the Swiss MRO house last year. This latest acquisition consolidates it as a heavyweight in the global aftermarket.
Landmark and Standard Aero have combined revenues of around $1.5 billion and together employ 5,000. Winnipeg-based Standard Aero, formerly part of Dunlop Aerospace, specialises in regional aircraft engines, including the General Electric CF34, Rolls-Royce AE3007 and Pratt & Whitney Canada PW100 and PT6. Around 40% of its work comes from defence.
Arizona-based Landmark has four MRO sites in the USA, focusing on business and regional aircraft, and operates Associated Air Center, a completions centre for Airbus and Boeing corporate jets. The Landmark Aviation Airport Services network of 33 fixed-base operations will be sold.
Johnson says the takeover did not face security hurdles because Standard Aero's military work is in maintenance.
Although the two businesses will retain their branding for now, both will merge under the company's DAE Engineering arm, one of several aviation sectors, including aircraft leasing, airport management and training, DAE is building a presence in.
Source: Flight International
