General Electric Co. agreed to sell MRA Systems LLC (MRAS) to Vision Technologies Aerospace Inc. for a reported $630 million. The Baltimore-based MRAS manufactures engine nacelles (housings), thrust reversers, and other aerostructures for narrow- and wide-body commercial aircraft, and also has a presence in the aircraft spare-parts supply chain.
The “cash-free, debt-free” transaction (meaning that the seller, GE, will keep the business’s cash and debts, transferring the physical assets to the buyer) may arrive at a final value of $440 million at the expected closing date during Q1 2019, according to the buyer.
MRAS is reported to be the sole supplier of nacelles for the CFM International LEAP-1A engines installed on Airbus A320neo aircraft, one of the most widely adopted narrow-body aircraft in the commercial aircraft sector. Since 2012, MRAS has delivered over 500 nacelles for LEAP-1A engines, and there are over 6,000 A320neo aircraft on order, as noted by the buyer.
In addition to the Airbus platform, MRAS supplies nacelles for the LEAP-1C engine and GE Aviation CF34 engines installed by Commercial Aircraft Co. of China Ltd. (COMAC) on its C919 and ARJ21 aircraft. It also supplies nacelles for Bombardier’s Global 7000/8000 private/business jets.
VT Aerospace is a subsidiary of Singapore Technologies Engineering Ltd., a technology and engineering group that indicated its strategy is “to scale up its aerospace capabilities by moving the company into the OEM business.”
“MRAS’ design, engineering and manufacturing know-how in advanced composite structures is synergistic with ST Engineering’s composite manufacturing capabilities,” according to its announcement.
“Moving upstream into the business of design and manufacturing of nacelles will allow us to benefit directly from the robust growth of the global aircraft fleet as an OEM, and enable us to serve our customers better through an enhanced suite of products and services,” stated Lim Serh Ghee, president of ST Engineering’s Aerospace sector.