The carbon fibre composites manufacturer has completed its takeover of Boeing Australia’s MRO subsidiary.
In a note to shareholders, Quickstep has confirmed it has completed its acquisition of Boeing Australia Component Repairs (BACR) — Boeing Defence Australia’s maintenance, repair and overhaul (MRO) capability, based in Tullamarine, Victoria.
Under the terms of the asset purchase agreement — which has been approved by major regulatory bodies (CASA, FAA, EASA and DASR) — Quickstep has acquired operating assets, inventories, and certain customer contracts from the firm via its wholly-owned subsidiary Quickstep Aerospace Services.
The transaction has been 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 the acquisition to increase its earnings per share (EPS) by year two.
The ASX-listed aerospace company— 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 — aims 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.
Following the initial announcement of the acquisition, Mark Burgess, CEO of Quickstep, said the deal aligns with the business' broader strategy, enabling it to grow its defence sustainment business, while also opening up new opportunities in the high value commercial aftermarket.
Scott Carpendale, vice president and managing director of Boeing Defence Australia, also welcomed the deal, which he said would form part of a broader ramp up in collaboration between the companies.
In addition to the asset purchase agreement, Boeing Defence Australia and Quickstep have commenced negotiations 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.