The carbon fibre composites manufacturer has agreed terms for the purchase of Boeing Defence Australia’s aerospace MRO capability.
Quickstep has announced plans to acquire Boeing Defence Australia’s maintenance, repair, and overhaul (MRO) capability, based in Tullamarine, Victoria.
Under the terms of the Asset Purchase Agreement, Quickstep will acquire operating assets plus inventories and certain customer contracts from Boeing Australia Component Repairs (BACR) through its wholly-owned subsidiary, Quickstep Aerospace Services.
Quickstep has also offered to onboard certain BACR employees and has agreed to assume employee liabilities for transferring employees and certain other business liabilities.
The transaction will be funded by a "top tier" Australian bank, as part of a refinancing package for Quickstep’s existing long-term loan, offering a reduced margin.
Quickstep expects to complete the acquisition by the end of 2020; however, the deal is subject to regulatory approvals related to the operation of the facility.
The firm added that it expects the acquisition to increase the ASX-listed company's earnings per share (EPS) by year two.
Quickstep — which has recent experience working with Boeing, Airbus, Embraer and Bombardier aircraft, F/A-18A/B Classic Hornets, F/A-18F Super Hornets, C-130J Hercules and CH-47 Chinooks — said it intends to leverage its existing relationships and capabilities to broaden the scope of MRO work offered to include F-35 and other military and commercial work.
Key approvals include all major regulatory bodies — CASA, FAA, EASA and DASR — with Quickstep working towards obtaining certifications.
In addition to the asset purchase agreement, Boeing Defence Australia and Quickstep have agreed to commence discussions on a long-term agreement that, if entered into, would develop a broader, ongoing collaboration in both the military and commercial aerospace segments, covering new production and sustainment of existing aircraft types.
Following the announcement, Mark Burgess, CEO of Quickstep, said, “We are delighted to soon be welcoming highly capable aerospace employees from the BACR business to Quickstep. The acquisition of this important national capability aligns well to our business strategy, positions us to grow our defence sustainment business and opens up new opportunities in the high value commercial aftermarket as we move toward post pandemic recovery."
Scott Carpendale, vice president and managing director of Boeing Defence Australia, added, “We’re pleased that this agreement will offer Quickstep – a well-established and highly capable Australian company – the ability to grow its unique sovereign capability to the benefit of regional commercial and defence customers.
“We look forward to continuing to work with Quickstep on new opportunities to increase their support of Boeing customers locally and globally.”