Vector Aerospace Corporation

Vector Aerospace Corporation

July 25, 2007 09:54 ET

Vector Aerospace Announces Preferred Bidder Status on Potential European Acquisition

TORONTO, ONTARIO--(Marketwire – July 25, 2007) - Vector announces that it was today named by the United Kingdom Ministry of Defence (MoD) as the Preferred Bidder for the purchase of the Defence Aviation and Repair Agency (DARA) Rotary Wing and Components Businesses. Assets included in the proposed purchase transaction include the helicopter repair facilities located in Southampton, U.K. and the helicopter component repair facilities located in Almondbank, Scotland.

The Southampton facilities provide MRO support for the MoD Chinook (CH-47), Lynx and Sea King helicopters. The Almondbank facilities provide MRO component support for these helicopter platforms and other platforms within the U.K., both for MoD and other customers. Contractual revenues from these Businesses are estimated to exceed $100,000,000 annually.

The proposed purchase transaction is subject to the completion of due diligence, consultation with representatives of relevant trade unions and the negotiation and finalization of a definitive purchase and sale agreement. At this stage, there can be no assurance that on-going negotiations will result in a binding transaction.

Vector Aerospace Corporation 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 airframes. It also provides information technology solutions to an international customer base. Principal operations include Atlantic Turbines, ACROHELIPRO, Sigma Aerospace and Pathix. 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 Chief Financial Officer
    (416) 925-1143