Quickstep, an independent Australian manufacturer of carbon fiber composites, announced that it has agreed to purchase the aviation maintenance, repair and overhaul (MRO) capabilities of Boeing Defence Australia in Tullamarine, Victoria.
Quickstep acquires the parts maintenance division of Boeing Australia-Quickstep CEO and general manager Mark Burgess and Boeing Defense Australia Vice President and General Manager Scott Carpendale signed an asset purchase agreement.
Under the terms of the asset purchase agreement, Quickstep (through its wholly-owned subsidiary Quickstep Aerospace Services) will obtain operating assets, inventory and certain customer contracts from Boeing Australia Component Repair (BACR). Quickstep will also provide quotations to certain BACR employees and will assume employee responsibilities and certain other business responsibilities for the transferred employees.
Australia`s top banks have pledged to fund the purchase as part of Quickstep`s existing long-term loan refinancing plan, thereby reducing the margin.
It is expected to be completed around the end of 2020, which requires Quickstep to obtain certain necessary regulatory approvals related to the operation of the facility. The acquisition is expected to increase earnings per share in the second year.
BACR uses leading equipment and the latest MRO knowledge to manage a wide range of composite, bonded metal and conventional metal aircraft structures for commercial and military operators. The team recently worked on Boeing, Airbus, Embraer and Bombardier Aircraft, F/A-18A/B Classic Hornet, F/A-18F Super Hornet, C-130J Hercules and CH-47 Chinook Aircraft Work. Quickstep intends to use its existing relationships and capabilities to expand the scope of MRO work to include F 35 and other military and commercial work. The key approvals include all major regulatory agencies-CASA, FAA, EASA and DASR, and Quickstep is working hard to obtain these certifications.
In addition to the asset purchase agreement, Boeing Defense Australia and Quickstep have agreed to discuss a long-term agreement that, once reached, will establish extensive and continuous cooperation in the military and commercial aviation fields, covering new production and maintaining existing Type of aircraft.
Commenting on the acquisition, Quickstep CEO Mark Burgess said:
"We are very pleased to soon welcome highly capable aviation employees from the BACR business unit to Quickstep. The acquisition of this important national capability fits well with our business strategy, allowing us to develop our defense maintenance business and move towards The recovery process after the pandemic has opened up new opportunities for high-value commercial aftermarkets."
Scott Carpendale, vice president and managing director of Boeing Australia`s Department of Defense, said:
"We are very pleased that this agreement will provide Quickstep (a long-established and strong Australian company) with the ability to develop its unique sovereign capabilities, thereby benefiting from regional business and Quickstep CEO and General Manager, Mark Burgess and Scott Carpendale, vice president and general manager of Boeing Defense Australia, signed an asset purchase agreement."
"We look forward to continuing to work with Quickstep to find new opportunities to increase their support to Boeing customers locally and globally."