AAR Corp completes sales negotiations on two deals
AAR Corp has acquired two companies from Teleflex.
International business negotiations have been completed on a deal that will see AAR Corp take over Telair International GmbH and Nordisk Aviation Products.
The former will acquire the two businesses from its rival aircrafts supplier Teleflex and means its commercial manufacturing business has been greatly increased.
David Storch, chairman of AAR Corp - which was established in 1951 and has 6,500 employees in 17 countries - noted the agreement strengthens the firm's position in the "global aerospace market".
"We are very impressed with the operating teams at Telair and Nordisk and look forward to working closely with them to grow these businesses," he added.
The deal is valued at $280 million (£178 million) - which will be paid for using the company's existing credit facility - and negotiation skill may have been required to secure the final terms of the transaction.
AAR Corp estimates it will have total yearly revenue of $225 million by 2013 as a result of the merger.
Posted by Edel Quinn
Source: AAR Corp press release, October 21st