US company acquires Australian SME

Military & Aviation Spares acquisition

AMS Group, a group of innovative technology and logistic support service companies in the US, has acquired Australian SME Military & Aviation Spares (MA-Spares).

Managing director of MA-Spares Steve Drinkwater informed MA-Spares customers of the news via a letter released on Monday night.


For the past four months, MA-Spares has been working in collaboration with the AMS Group, with settlement expected to be on 31 March.

The sale of MA-Spares to AMS Group includes Military & Aviation Spares Pty Ltd in North Ipswich, Australia, and their US-based subsidary in Seattle, Military & Aviation Spares LLC.

The company will continue to operate in its current structure with no change in name or senior management at either the North Ipswich or Seattle offices.

Speaking with Defence Connect, Drinkwater said the decision to sell was largely influenced by AMS, who "wanted to enter this market and decided acquisition to be a good option". 

Drinkwater said the decision to sell means MA-Spares can now offer even greater capabilities and the option to connect his customers with major primes.

"[The benefits I see are] greater capability [that] I can offer to my customers being direct to Defence and Defence primes. I will now have reach back into some of the major aerospace OEM's the likes of Honeywell," he said.

MA-Spares is now able to offer maintenance, repair and overhaul (MRO) services, along with licensed manufacturing to its current and future customers. Through AMS Group’s partnerships with key prime contractors and US Military repair depots, MA-Spares can offer full tip to tail support on fixed and rotary wing aircraft, as well as wheeled and tracked land vehicles and naval vessels.

Drinkwater praised the management and direction of AMS Group and said he is looking forward to working with them and their business.

"They are a privately-owned group and the CEO and COO are the type of people I wish to, and like to, work with. The group structure, the way they conduct business, their history and capability are all attractive to myself and the way MA-Spares likes to operate," he said.

"MA-Spares has always been about supporting the war fighter, and I believe that I have many years to come under the AMS Group banner in which I can not only continue as a defence contractor but enhance and improve the service MA-Spares provides to the ADF."

In Drinkwater's letter to customers, the managing director said he is looking forward to continuing to provide "our customers with the same level of commitment and support MA-Spares has built a reputation around, and I am excited to add the new capabilities we acquire from our sister companies within the AMS Group".

MA-Spares can handle and ship dangerous goods; provide hardware, paints and sealants to all their customers; provide spare parts for the M113 and Australian Light Armoured Vehicle (ASLAV) fleets operated by the Australian Army; provide a variety of spare parts, fuel and oil hoses and components required to service and maintain Australian Navy Warships; provide spare parts, hardware and electrical cables required for the maintenance and repair of Harpoon and Sparrow weapon control systems fitted to Australian Warships; and provide aerospace product to customers within Australia and overseas.

AMS Group issued a statement saying they are "pleased to announce the acquisition of Military & Aviation Spares Pty Ltd and its subsidiary, Military & Aviation Spares LLC".

"This latest acquisition further enhances AMS’ commitment to the global military aftermarket. MA-Spares is a highly regarded supplier of spares and equipment to the Australian Military and Australian Defence prime contractors. We are pleased to be able to offer our customers and partners an expanded service supported by our broader range of offerings," the company said.

MA-Spares declined to comment on the enterprise value of the sale.

US company acquires Australian SME
lawyersweekly logo

more from defence connect

Mar 22 2019
Private Equity backs Australian defence SME sector
Sydney-based CHAMP Private Equity is poised to make a rare investment in Australia’s growing defen...
Dr. Malcolm Davis, Australian Strategic Policy Institute
Mar 21 2019
PODCAST: The challenges and opportunities facing the Australian defence sector, Dr Malcolm Davis, Australian Strategic Policy Institute
In this special episode of the Defence Connect Podcast recorded live on-site at the Avalon Internati...
Mar 22 2019
MOU forges closer ties between Naval Shipbuilding College and RAN
The Naval Shipbuilding College will work in close partnership with the Royal Australian Navy to ide...
Recommended by Spike Native Network