AAR Corp acquires Telair and Nordisk

US-based aviation services company AAR Corp has announced that it has reached a deal to purchase Telair International GmbH (Telair) and Nordisk Aviation Products, AS (Nordisk) from Teleflex Incorporated for US$280 million.


AAR


AAR Corp acquires Telair and Nordisk

US-based aviation services company AAR Corp has announced that it has reached a deal to purchase Telair International GmbH (Telair) and Nordisk Aviation Products, AS (Nordisk) from Teleflex Incorporated for US$280 million. AAR, which specialises in aviation supply chain; government and defence services; maintenance, repair and overhaul; and structures and systems said the acquisition significantly adds to its commercial manufacturing business. It added that the deal “greatly enhances the company’s ability to capitalise on commercial aircraft build cycles as a Tier-1 supplier to Airbus and Boeing.” Telair is a leading industry player in the design, manufacture and support of cargo loading systems for widebody and narrow-body passenger and freighter aircraft. Telair provides standard container-based systems for Airbus A330/340 aircraft types, as well as the future Airbus A350 and recently launched Boeing 747-800. In addition, the business manufactures systems and components for the Boeing 737 and Airbus A320 families of aircraft, and for converted Boeing 767-300s and 747-400s. Approximately 40 per cent of Telair’s revenue is generated from aftermarket spares and support for its installed base of cargo systems. Telair operates from facilities in Germany, Sweden and Singapore while Nordisk also designs and manufactures heavy-duty pallets and lightweight cargo containers for commercial airlines from facilities in Norway and China. AAR said the deal is expected to generate, on a full-year basis in fiscal year 2013, more than $225 million of revenue. The businesses will operate as part of AAR’s Structures and Systems segment. “The acquisition strengthens AAR’s standing as a leading provider of Cargo Loading Systems to the global aerospace market,” said David P. Storch, chairman and CEO of AAR Corp. “Telair’s position as a leading provider to the commercial market is an excellent complement to AAR’s leadership position serving the military market. Telair systems are installed on more than 4,000 aircraft currently operating around the world, representing a significant aftermarket opportunity for the company. We are very impressed with the operating teams at Telair and Nordisk and look forward to working closely with them to grow these businesses.”