ST Engineering US unit buys DRB Aviation

Acquisition to grow the Group's cabin interior engineering design capability.

Singapore Technologies Engineering Ltd (ST Engineering) Tuesday announced that Vision Technologies Aerospace Incorporated (VT Aerospace) has entered into an agreement to acquire 100% of the shares of DRB Aviation Consultants, Inc. (DRB Aviation) for a purchase consideration of US$1.45m (approximately S$1.75m), effective consideration will be net of debt. DRB Aviation will be a wholly owned subsidiary of VT Aerospace. VT Aerospace holds the aerospace companies of Vision Technologies Systems, Inc. (VT Systems), the US headquarters of ST Engineering.

The purchase consideration was arrived at on a willing buyer willing seller basis, after negotiations between the parties, taking into account DRB Aviation’s past performance, current profitability and future prospects.

The acquisition 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.

The acquisition is part of ST Engineering’s strategic intent to develop the Group’s cabin interior engineering capability. DRB Aviation has a strong track record in aircraft interiors engineering. It is a meaningful addition to the sector's engineering and development capabilities, supporting aircraft completion centres, airline operators and aircraft maintenance, repair and overhaul (MRO) providers in their aircraft modification activities, according to an ST Engineering report.

In addition, DRB Aviation is an organisational designee under the FAA’s Organisation Designation Authorisation (ODA) programme that allows autonomy and efficiency in the issuance of minor Supplementary Type Certificates (STCs) for avionics and interiors projects. This adds to the certification capability of ST Engineering’s Aerospace sector, which currently holds a European Aviation Safety Agency Design Organisation Approval authorisation. The founder and president of DRB Aviation, Don Bell, will continue with the company to drive the business towards continued growth.

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