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Eurocopter To Buy Vector Aero for US$638 Million
Eurocopter said March 28 it has agreed to buy Vector Aerospace, a Canadian specialist in maintenance, repair and overhaul, for 625 million Canadian dollars ($637.8 million), as part of a drive into the North American market by parent company EADS.
The cash offer by Eurocopter and EADS was pitched at 13 Canadian dollars per share, representing a premium of 80 percent on the closing price of Vector shares on Dec. 2 on the Toronto stock market, or about a 15 percent premium over the closing price March 25, Eurocopter and EADS said in a statement.
Eurocopter is an EADS subsidiary.
"The board of directors of Vector Aerospace, after receiving the recommendation of the special committee, has unanimously approved the offer and has determined that it is in the best interests of Vector Aerospace for the offer to be made," Eurocopter and EADS said.
Shareholders holding some 60 percent of Vector's stock have signed agreements to tender their shares under the offer, the joint statement said.
Much of Vector's work comes from servicing aero engines and helicopters built by Boeing and Sikorsky, direct competitors of Eurocopter.
EADS said March 24 it was in exclusive talks to buy Vector.
Vector had 2010 sales of 545 million Canadian dollars, about a quarter of Eurocopter's annual sales and support business totaling 1.7 billion euros, the EADS unit said.
Vector employs around 2,500 staff in Canada, the U.K., United States and South Africa.
"This acquisition is a catalyst for the growth of support and services with a focus on the high end segment and the servicing of multi-customer platforms both in the civil and governmental markets," EADS and Eurocopter said. "Vector Aerospace will also strengthen EADS' presence in North America, improving the natural dollar hedge."
Eurocopter To Buy Vector Aero for $638 Million - Defense News
Eurocopter said March 28 it has agreed to buy Vector Aerospace, a Canadian specialist in maintenance, repair and overhaul, for 625 million Canadian dollars ($637.8 million), as part of a drive into the North American market by parent company EADS.
The cash offer by Eurocopter and EADS was pitched at 13 Canadian dollars per share, representing a premium of 80 percent on the closing price of Vector shares on Dec. 2 on the Toronto stock market, or about a 15 percent premium over the closing price March 25, Eurocopter and EADS said in a statement.
Eurocopter is an EADS subsidiary.
"The board of directors of Vector Aerospace, after receiving the recommendation of the special committee, has unanimously approved the offer and has determined that it is in the best interests of Vector Aerospace for the offer to be made," Eurocopter and EADS said.
Shareholders holding some 60 percent of Vector's stock have signed agreements to tender their shares under the offer, the joint statement said.
Much of Vector's work comes from servicing aero engines and helicopters built by Boeing and Sikorsky, direct competitors of Eurocopter.
EADS said March 24 it was in exclusive talks to buy Vector.
Vector had 2010 sales of 545 million Canadian dollars, about a quarter of Eurocopter's annual sales and support business totaling 1.7 billion euros, the EADS unit said.
Vector employs around 2,500 staff in Canada, the U.K., United States and South Africa.
"This acquisition is a catalyst for the growth of support and services with a focus on the high end segment and the servicing of multi-customer platforms both in the civil and governmental markets," EADS and Eurocopter said. "Vector Aerospace will also strengthen EADS' presence in North America, improving the natural dollar hedge."
Eurocopter To Buy Vector Aero for $638 Million - Defense News
