TIMCO to be purchased by Hong Kong company
GREENSBORO, N.C. — TIMCO Aviation Services Inc., a Greensboro-based company, announced Wednesday that it has signed an agreement to be purchased by Hong Kong Aircraft Engineering Company Limited for $388.8 million.
The transaction is expected to close in the first quarter of 2014.
TIMCO performs aircraft maintenance work and makes lightweight aircraft seats. It has a work force of about 1,800 people in the Triad.
According to a press release, the acquisition will create one of the world’s largest airframe MRO service providers based on revenues, number of customers and scope of services and products offered.
HAECO and TIMCO together will be able to provide customers with an enhanced range of capabilities and will be uniquely positioned to capitalize on significant growth opportunities, particularly in the aircraft interiors engineering and manufacturing market segments.
“We are delighted to have agreed to join HAECO, a respected and long-standing leader in our industry with customers that include the top global and U.S. airlines,” said Kevin Carter, Chief Executive Officer of TIMCO.
“This transaction will open the door to new growth going forward. By making an investment in TIMCO, HAECO is demonstrating its commitment to strengthening our platform in North America. This exciting and unique opportunity offers our customers access to a broader and deeper platform of products and services while better enabling us to seize on current global growth opportunities related to interiors engineering and manufacturing.”
The seller is a company controlled by investment vehicles managed by Owl Creek Asset Management, L.P., an investment manager based in the U.S., which has helped TIMCO grow and position itself for the transaction announced today.
“We have long been looking to expand our global presence and are excited that this acquisition of TIMCO will enable us to unlock exciting growth opportunities for us globally,” said Augustus Tang, Chief Executive Officer of HAECO.
“TIMCO holds a premier standing in the industry and maintains a strong track record of safety, innovation and customer service. Together, we will continue our shared focus on exceptional customer service, support of our local communities and a fundamental commitment to safety.”