Hong Kong Aircraft Engineering Co. (Haeco) has announced that it plans to purchase Timco Aviation Services for $388.8 million.
The acquisition, expected to close in the first quarter 2014 pending typical regulatory and closing conditions, gives Haeco an entry into the North American MRO market and provides interiors manufacturing and expanded line maintenance capabilities. This is a key element given the engineering focus that Haeco has placed on interiors over the last several years, in particular for Cathay Pacific, which, like Haeco, is part of the Swire Pacific Group.
In a statement, Kevin Carter, Timco’s CEO, says, “This exciting and unique opportunity offers our customers access to a broader and deeper platform of products and services while better enabling us to seize on current global growth opportunities related to interiors engineering and manufacturing.”
By purchasing Timco, which is controlled by investment vehicles managed by OwlCreek Asset Management, Haeco says the combined businesses will “accelerate the development of technical capabilities,” and services that cover the range of lifecycle support--including design, certification, manufacturing, fitting, retrofitting and component maintenance. The transaction also will expand Haeco’s narrowbody and regional aircraft service offerings.
The deal, which came together quickly, gives Timco the vehicle to expand in the growing Asia-Pacific aftermarket, which it didn’t have enough bandwidth to accomplish on its own, according to Kip Blakely, VP industry and government relations for Timco.
He says Timco’s management will remain after the transaction closes, as will the MRO’s name.