Vector Aerospace Corporation

Vector Aerospace Corporation

March 24, 2011 10:02 ET

Vector Aerospace Confirms Exclusive Discussions

TORONTO, ONTARIO--(Marketwire - March 24, 2011) - In light of recent statements in the press, Vector Aerospace Corporation (TSX:RNO) ("Vector" or the "Corporation") has been asked by Market Surveillance on behalf of the Toronto Stock Exchange to disclose the current state of the review of strategic alternatives with the objective of enhancing shareholder value announced previously by the Corporation.

In the process of reviewing its strategic alternatives, a special committee of the Board of Directors of the Corporation has sought expressions of interest from a wide variety of parties with respect to the Corporation. In the context of this process, the special committee of the Board of Directors of the Corporation has received several non-binding expressions of interest and after reviewing them the Corporation has entered into an exclusivity agreement with EADS N.V..

Any transaction is subject to the finalization of due diligence and negotiations with respect to definitive transaction documentation and other customary conditions. There is no assurance that the negotiations with this party will result in a binding offer being made for the Corporation.

The Corporation intends to make no further announcements or comments unless the circumstances so warrant.

Vector Aerospace Corporation is an independent provider of aviation repair and overhaul services. 

Through facilities in Canada, the United States the United Kingdom and Africa, Vector provides services to commercial and military customers for various types of gas turbine engines, components and helicopter airframes.

Vector also provides information technology solutions to an international customer base.

Principal operations include Vector Aerospace Engine Services Atlantic Inc., Vector Aerospace Engine Services UK Limited, Vector Aerospace Helicopter Services Inc. and Vector Aerospace International Limited.  

The Company has approximately 2,500 employees.

Specific Note Regarding Forward Looking Statements

This news release may contain certain information that constitutes forward looking information within the meaning of applicable securities laws. These statements are based on Vector's current expectations, estimates, forecasts and projections related to the operating environment, economies and markets in which Vector operates; its financial condition and its general business. By their very nature, forward-looking statements are based on certain factors and assumptions and are subject to important risks and uncertainties. The forward-looking statements herein may differ materially from actual results or events. While Vector considers the assumptions on which these statements are made to be reasonable, based on information currently available to it, they may prove to be incorrect and 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 factors, general economic, market and business conditions, fluctuations in the cost of borrowing, Vector's ability to receive timely regulatory approvals, competitive actions of other companies, including increased competition from original equipment manufacturers with their own in-house service providers, the occurrence of unexpected events such as fires, equipment failures and other similar events affecting Vector or other parties whose operations or assets directly or indirectly affect Vector 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 2009 Annual Report and in all management's discussion and analysis of financial condition and results of operations filed since the 2009 Annual Report which are available on Vector's website and on SEDAR. Any forward looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Unless otherwise required under applicable laws, we disclaim 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
    Declan O'Shea
    President & CEO
    Toronto, Ontario
    (416) 640-2115
    Vector Aerospace Corporation
    Randal L. Levine
    Senior Vice-President and Chief Financial Officer
    Toronto, Ontario
    (416) 640-2120