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- Aeroplane engine repair specialist Pacific Turbine Brisbane (PTB) announces a deal to buy US-based United Turbine for just over $4 million
- United Turbine is an engine repair arm of Continental Aerospace Technologies, specialising in PT6 engines
- PTB says the price of the deal is still subject to adjustments and currency movements, but it expects to pay around $4.3 million for United Turbine
- The company says it plans for the North American market to be a key driver of future growth
- Shares in PTB Group are up 2.92 per cent and trading at 70 cents each at 2:07 pm AEST
Aeroplane engine repair specialist Pacific Turbine Brisbane (PTB) is set to buy US-based United Turbine for just over $4 million.
PTB revealed this morning its plans to buy United Turbine from aircraft engine manufacturer Continental Aerospace Technologies, with the company expecting the deal to be finalised by mid-July.
United Turbine is an engine repair arm of Continental Aerospace, specialising in PT6 engines — one of the most popular classes of engine for small aircraft.
Pacific Turbine said the final price of the deal was still subject to adjustments and currency movements, but it expected to pay around $4.3 million for the new business. PTB said it had enough cash on hand to fully fund the buyout.
According to Pacific Turbine CEO Stephen Smith, the purchase cements PTB’s position as the “world’s largest non-OEM aligned PT6A/T Maintenance Repair and Overhaul provider”.
“It also adds to the diversity of our customer base and provides the opportunity for PTB Group to continue growing those customer relationships that have been nurtured by United Turbine’s thirty successful years of operating,” Mr Smith said.
By buying United Turbine, PTB will gain access to its full inventory of tools and equipment, its work in progress, and its customer base. Further, the purchase gives PTB warranty support from Continental Aerospace, though PTB did not specify when this support expires.
According to PTB, Continental’s decision to sell its United Airline arm is part of its plans to focus on the piston engine market, making the deal beneficial for both parties.
Pacific Turbine said it planned for the North American market to be a key driver of future growth for the company.
Shares in PTB Group were up 2.92 per cent and trading at 70 cents each at 2:07 pm AEST. The company has an $89 million market cap.
