Vector Aerospace Corporation

Vector Aerospace Corporation

February 05, 2008 09:15 ET

Vector Aerospace Announces Acquisition of UK Defence Aviation and Repair Agency Rotary Wing and Components Businesses

TORONTO, ONTARIO--(Marketwire – February 5, 2008) - Vector Aerospace Corporation (Vector) (TSX:RNO) announced today that its indirect wholly-owned subsidiary, Vector Aerospace International Limited, has entered into a definitive purchase and sale agreement with The Secretary of State for Defence in the United Kingdom (MOD) to acquire the Defence Aviation and Repair Agency (DARA) Rotary Wing and Components Businesses in consideration of (pnds stlg)17 million, subject to a usual working capital adjustment. The assets included in the transaction include the helicopter repair facilities located at Fleetlands near Portsmouth, England and the helicopter component and repair facilities located at Almondbank, near Perth in Scotland. The transaction is expected to be completed during the first quarter of 2008, and is subject to usual closing conditions.

The Fleetlands facility in Portsmouth provides maintenance, repair and overhaul support for the MOD Chinook (CH-47), Lynx and Sea King helicopters. The Almondbank facilities provide maintenance, repair and overhaul and component support for these helicopter platforms and other platforms within the United Kingdom, both for MOD and other customers.

Vector believes that the skill sets and capabilities of its business align with the DARA businesses being acquired, and that this acquisition provides an attractive expansion platform into new international markets. Vector already contributes to the MOD frontline effort through its UK operations, Sigma Aerospace, at Croydon, England, that supports the RAF C130 K Hercules transport and VC10 tanker fleets.

Donald Jackson, Chairman, President and CEO of Vector, said: "We are very pleased to finalize the definitive purchase agreement and move the process closer to completion. Purchase of the DARA business will offer an attractive opportunity for Vector's shareholders. We appreciate the efforts of DARA and MOD's transition team in moving the matter forward. We look forward to continuing to work with the MOD and, with the support of the existing DARA work force, in providing reliable service to its key helicopter platforms and creating a European centre of excellence in helicopter maintenance."

Vector is an independent provider of aviation repair and overhaul services. Through facilities in Canada, the United States and the United Kingdom it provides services to commercial and military customers for various types of gas turbine engines, components and helicopter structures. Principal operations include Atlantic Turbines, ACROHELIPRO and Sigma Aerospace. Vector has approximately 1,100 employees.

This news release contains statements referring to the future. These statements are based on current expectations, related to the markets in which Vector operates and its financial condition, and its general business. By their very nature, forward looking statements involve inherent risks and uncertainties that the expectations will not be achieved. Indeed, the forward looking statements may differ materially from actual results or events. Readers are cautioned, therefore, not to place undue reliance on these statements as a number of important factors could cause actual results to differ materially from those expressed in such forward-looking statements. These factors include, without limitation, global and local political and economic uncertainty, and future demand for Vector's services. Readers should also refer to Vector's continuous disclosure materials filed with Canadian Securities Regulatory Authorities for additional information with respect to certain of these risk factors. A discussion of risk factors is contained in Vector's 2006 Annual Report which is available on Vector's website and on SEDAR. Vector disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact Information

  • Vector Aerospace Corporation
    Donald K. Jackson
    Chairman, President & CEO
    (416) 925-1143
    Vector Aerospace Corporation
    Randal L. Levine
    Senior Vice-President and CFO
    (416) 925-1143