AAR to acquire Telair International, Nordisk Aviation

WOOD DALE — AAR Corp. said it has signed a definitive agreement to purchase Telair International GmbH and Nordisk Aviation Products, AS from Teleflex Incorporated for $280 million.

The acquisition significantly adds to AAR's commercial manufacturing business and greatly enhances the Company's ability to capitalize on commercial aircraft build cycles as a Tier-1 supplier to Airbus and Boeing.

Telair designs, manufactures and supports cargo loading systems for wide-body and narrow-body aircraft with established positions on the world's current and next-generation passenger and freighter models. Telair provides standard container-based systems for Airbus A330/340 aircraft, as well as the future Airbus A350 and recently launched Boeing 747-800. In addition, the business manufactures systems and components for the Boeing 737 and Airbus A320 aircrafts, and for converted Boeing 767-300s and 747-400s.

Approximately 40 percent of Telair's revenue is generated from aftermarket spares and support for its installed base of cargo systems. Telair operates from facilities in Germany, Sweden and Singapore.

Nordisk designs and manufactures heavy-duty pallets and lightweight cargo containers for commercial airlines from facilities in Norway and China and also has a strong aftermarket position.

“The acquisition strengthens AAR's standing as a leading provider of Cargo Loading Systems to the global aerospace market,” said David P. Storch, chairman and chief executive officer of AAR.  “Telair's position as a leading provider to the commercial market is an excellent complement to AAR's leadership position serving the military market.

“Telair systems are installed on more than 4,000 aircraft currently operating around the world, representing a significant aftermarket opportunity for the company,” he added. “We are very impressed with the operating teams at Telair and Nordisk and look forward to working closely with them to grow these businesses.”

The purchase price will be initially funded through the company's existing revolving credit facility.  The transaction is subject to customary closing conditions and is expected to be completed before the end of the calendar year.  

The transaction is expected to generate, on a full-year basis in fiscal year 2013, more than $225 million of revenue.