Singapore-listed engineering giant ST Engineering said its proposed acquisition of a critical airplane engine parts maker from General Electric has received approval from a US government committee, according to a stock exchange filing.
The acquisition of Maryland-based engine nacelle systems manufacturer MRA Systems (MRAS) will be carried out by ST Engineering’s US subsidiary Vision Technologies Aerospace Incorporated in a $630-million deal.
ST Engineering, a technology, defence, and engineering group controlled by Temasek, expects the acquisition to be completed in the coming week after receiving clearance from the Committee on Foreign Investment in the United States (CFIUS).
“With this clearance from CFUIS, ST Engineering has obtained all applicable regulatory approvals to consummate the proposed acquisition,” the firm said.
The deal, which was first announced in September, gives Vision Technologies 100 per cent ownership in MRA Systems, the sole supplier of nacelles for Airbus SE A320neos using LEAP-1A engines manufactured by CFM International, a GE and Safran SA joint venture.
A nacelle is a casing that holds engines, fuel, or equipment on an aircraft.
With 90 years of history in the aviation industry, MRAS has become an established original equipment manufacturer (OEM) of engine nacelle systems for both narrowbody and widebody aircraft. Based in Baltimore, Maryland, MRAS has two principal business lines: design, development, production, and sale of nacelles, thrust reversers, and aerostructures; and spare parts sales.
ST Engineering said it has been looking to invest in new growth areas, including businesses that offer competitive products through the ownership of intellectual properties and are synergistic to its core businesses.
“MRAS is a strong fit given its expertise and proprietary designs to manufacture nacelles using advanced composites,” it said.
The acquisition will allow ST Engineering to scale up its aerospace capability by moving the company into the OEM business of high-value nacelle components and replacement parts, the engineering major said in a statement.
ST Engineering is a global technology, defence and engineering group specialising in the aerospace, electronics, land systems, and marine sectors. The group employs about 22,000 people across offices in Asia, the Americas, Europe, and the Middle East, serving customers in the defence, government and commercial segments in more than 100 countries.
Last month, the group announced that its European subsidiary has made a $281-million offer to fully acquire Belgium-based satellite communications firm Newtec Group. ST Engineering said it entered into a conditional share purchase agreement to acquire Newtec, which offers consumer satellite terminals and bandwidth efficiency technology.