FTAI Aviation has entered an agreement to acquire Lockheed Martin Canada’s commercial engine repair division at a purchase price of $170 million.
Lockheed Martin Commercial Engine Solutions (LMCES) operates a facility in Montreal with a focus on maintenance and parts repair on CFM International CFM56 family engines. It employs around 400 people in Montreal and also has three test cells.
Both parties confirmed the agreement May 30. The acquisition is subject to customary regulatory approvals and is anticipated to close in the second half of 2024.
FTAI was an existing customer of LMCES, and in 2020 both parties established a module factory facility in Montreal to distribute CFM56 modules globally. The facility operates with capacity for up to 900 CFM56 modules per year and houses three test cells on-site.
According to FTAI, which specializes primarily in CFM56 and IAE V2500 services, the acquisition will further enhance its maintenance, repair and exchange [MRE] business and create “permanent engine and module manufacturing capabilities in Canada.” FTAI plans to continue expanding its module customer base, which currently includes more than 50 airlines and lessors worldwide.
Additionally, FTAI expects to establish a center of excellence in Montreal for piece-part repairs, serving both its own operations, including the used serviceable material business, and third-party customers.
“Acquiring Lockheed Martin Commercial Engine Solutions represents a significant milestone for FTAI as we expand our MRE offerings,” says Joe Adams, CEO of FTAI. “We know the facility well and greatly value the team’s technical expertise and commitment to quality.”
LMCES is FTAI’s second major acquisition in the past six months. At the end of 2023, it acquired full ownership of Miami-based CFM56 engine specialist QuickTurn Engine Center after acquiring the 50% stake of partner Unical Aviation.
QuickTurn specializes in CFM56-5B and -7B engine module maintenance along with testing services from its Florida facility.
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