TORONTO, Feb. 5 /CNW/ - 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
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.
For further information:
For further information: Donald K. Jackson, Chairman, President & CEO,
Toronto, Ontario, Telephone: (416) 925-1143; Randal L. Levine, Senior
Vice-President and CFO, Toronto, Ontario, Telephone: (416) 925-1143; Website: