ALEXANDRIA, Va., Dec. 21, 2011 /PRNewswire/ -- Singapore Technologies Engineering Ltd (ST Engineering) today announced that Vision Technologies Aerospace Incorporated (VT Aerospace) has entered into an agreement with Pratt & Whitney to invest in a 50.1% stake in EcoServices, LLC (EcoServices), for a purchase consideration of $33.3m. Pratt & Whitney will retain the remaining 49.9% stake. Following the investment, EcoServices will become a subsidiary of VT Aerospace. Under this agreement, EcoServices will provide EcoPower® Engine Wash services to customers around the world. VT Aerospace holds the aerospace companies of Vision Technologies Systems, Inc. (VT Systems), the U.S. headquarters of ST Engineering.
The consideration was arrived at, after negotiations between the parties, taking into account EcoPower Engine Wash's past performance, current profitability and future growth prospects. Subject to regulatory approvals and customary conditions precedent, the transaction is anticipated to close around March 2012.
The investment is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
This investment aligns with ST Engineering's strategic direction to focus on the development of sustainable environmentally-friendly solutions across its business sectors to meet rising environmental challenges. It is also in line with the ST Engineering's plan to develop engine total support capability, to address customer and market demands. The largest provider of advanced technology engine wash services, EcoPower Engine Wash has a strong track record in engine wash solutions through its patented engine wash system. Managed as part of ST Engineering's global aerospace maintenance, repair and overhaul (MRO) network, EcoServices will leverage ST Engineering's network, track record and expertise in aircraft MRO and engineering, alongside Pratt & Whitney's extensive experience in advanced engine technologies. The derived synergies will allow EcoServices to better address the needs of the global engines MRO market.
"EcoPower Engine Wash is an established name in engines aftermarket. This investment aligns with ST Engineering Group's capability growth drive to expand our engine total support value chain. With this investment, we are strongly positioned to benefit from the new opportunities created for the Group. We look forward to growing this business with Pratt & Whitney."
- ANG Chye Kiat
President, VT Aerospace
"We are confident a partnership combining VT Aerospace's and Pratt & Whitney's commitment to quality and expertise will enable EcoPower Engine Wash to continue to provide customers the same environmentally-friendly and efficient service while also further expanding the service to new customers, platforms and geographic regions."
- Lou QUATTROCCHI
Vice President, Pratt & Whitney Product Line Management
With a current staff of about 50 specialists, the business provides EcoPower Engine Wash on-wing engine wash services to both commercial and military aircraft operators. It offers a cost effective and environmentally responsible solution to help aircraft operators improve engine performance while decreasing their carbon footprint. Under the joint leadership of Pratt & Whitney and VT Aerospace, EcoServices will continue to deliver the same pedigree of high quality solutions and excellent customer service to customers across the globe.
VT Aerospace owns three aerospace operating companies in Mobile, Alabama and San Antonio, Texas. These companies specialize in aircraft engineering design, maintenance and modification. It is one of the largest private employers in Mobile, and the largest private independent MRO employer in San Antonio.
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies (NYSE: UTX), based in Hartford, Connecticut, is a diversified company providing high technology products and services to the global aerospace and commercial building industries.
ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenues of $5.98b in FY2010 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, FTSE ASEAN 40 Index, MSCI Singapore and other indices. ST Engineering has more than 22,000 employees worldwide, and over 100 subsidiaries and associated companies in 23 countries and 41 cities. Please visit www.stengg.com.
VT Systems (Vision Technologies Systems, Inc.) is an engineering company providing integrated solutions to the commercial and government markets in the aerospace, electronics, land systems and marine sectors. VT Systems' innovative solutions, products and services include aircraft maintenance, repair and modification; software solutions in training and simulation; satellite-based IP communications technology; network solutions that integrate data, voice and video; rugged computers and computer peripheral equipment; specialized truck bodies and trailers; weapons and munitions systems; road construction equipment; and ship design and shipbuilding. Headquartered in Alexandria, Va., VT Systems operates globally and is a wholly owned subsidiary of ST Engineering. Please visit www.vt-systems.com.
SOURCE VT Systems