ST Engineering to acquire MRAS
Singapore Technologies Engineering is acquiring 100% ownership of nacelle system manufacturer Middle River Aircraft Systems.
Singapore Technologies Engineering Ltd (ST Engineering) has announced that its U.S. subsidiary, Vision Technologies Aerospace Incorporated (VT Aerospace), has entered into a conditional share purchase agreement to acquire 100% ownership in Middle River Aircraft Systems (MRAS) from GE Aviation for $630m.
MRAS is an established supplier of engine nacelle systems for both narrowbody and widebody aircraft. Based in Baltimore, Maryland, USA with approximately 800 employees, MRAS has two principal business lines: (1) design, development, production and sale of nacelles, thrust reversers and aerostructures, and (2) spare parts sales.
The company was selected by Safran Nacelles to supply the thrust reverser system and engine build-up (EBU) for the LEAP-1A powerplant on Airbus’ A320neo.
MRAS is also a partner with Safran Nacelles in the Nexcelle JV in which the French firm has overall responsibility for the LEAP-1C nacelle system that equips COMAC’s C919 twin-engine jetliner; while MRAS is in the leadership position for the Passport nacelle system on Bombardier’s Global 7500 twin-jet business aircraft.
The acquisition by ST Engineering follows the decision by the Singapore firm to invest in new growth areas, including businesses that offer competitive products through the ownership of intellectual properties and that are synergistic to its core businesses. The company sees MRAS as a strong fit, given its expertise and proprietary designs to manufacture nacelles using advanced composites.
ST Engineering says the acquisition will allow it to scale up its aerospace capabilities by moving the company into the OEM business of high-value nacelle components and replacement parts. MRAS’ design, engineering and manufacturing know-how in advanced composite structures is seen as synergistic with ST Engineering’s composite manufacturing capabilities.
ST Engineering reported sales of S$6.62bn in FY2017. The deal is expected to close by the end of the first quarter of 2019.