FTAI Aviation Agrees to Purchase Lockheed Martin Commercial Engines Solutions
30 May 2024 - 10:30PM
FTAI Aviation Ltd. (NASDAQ: FTAI) announces entry into an
agreement to purchase Lockheed Martin Commercial Engine Solutions
(“LMCES”) from Lockheed Martin Canada for a purchase price of $170
million. The acquisition is subject to customary regulatory
approvals and is anticipated to close in the second half of 2024.
LMCES is a 526,000-square-foot aircraft engine
maintenance repair facility located in Montréal, Quebec, with
extensive engine and piece-part repair capabilities for CFM56
engines. FTAI, LMCES’s largest customer, and LMCES established The
Module Factory™ at the facility in 2020 to distribute CFM56 modules
globally. The facility has a capacity for up to 900 CFM56 modules
per year and houses three test cells on-site.
This acquisition will further enhance FTAI’s
Maintenance, Repair, and Exchange (MRE) business, and create
permanent engine and module manufacturing capabilities in Canada.
FTAI will continue to expand its module customer base, which
currently includes over 50 airlines and lessors globally.
Additionally, FTAI expects to establish a center of excellence in
Montréal for piece-part repairs, serving both its own operations,
including the Used Serviceable Material business, and third-party
customers.
“Acquiring Lockheed Martin Commercial Engine
Solutions represents a significant milestone for FTAI as we expand
our MRE offerings,” said Joe Adams, CEO of FTAI. “We know the
facility well and greatly value the team’s technical expertise and
commitment to quality. We are excited to grow the shop’s piece-part
repair capabilities and continue delivering modules and engines to
the aftermarket from a world class facility in Montréal.”
About FTAI Aviation
Ltd.
FTAI owns and maintains commercial jet engines
with a focus on CFM56 and V2500 engines. FTAI’s proprietary
portfolio of products, including The Module Factory and a joint
venture to manufacture engine PMA, enables it to provide cost
savings and flexibility to its airline, lessor, and maintenance,
repair, and operations customer base. Additionally, FTAI owns and
leases jet aircraft which often facilitates the acquisition of
engines at attractive prices. FTAI invests in aviation assets and
aerospace products that generate strong and stable cash flows with
the potential for earnings growth and asset appreciation.
Cautionary Note Regarding
Forward-Looking Statements
This communication contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, including but not limited to the anticipated
timing for closing the acquisition and ability to close such
acquisition, expectations regarding FTAI’s ability to further
enhance our MRE business and create permanent engine and module
manufacturing capabilities, continued expansion of our module
customer base and the ability to establish and grow a center of
excellence for piece-part repairs. You can identify these
forward-looking statements by the use of forward-looking words such
as “outlook,” “believes,” “expects,” “potential,” “continues,”
“may,” “will,” “should,” “could,” “seeks,” “approximately,”
“predicts,” “intends,” “plans,” “estimates,” “anticipates,”
“target,” “projects,” “contemplates” or the negative version of
those words or other comparable words. Any forward-looking
statements contained in this communication are based upon our
historical performance and on our current plans, estimates and
expectations in light of information currently available to us. The
inclusion of this forward-looking information should not be
regarded as a representation by us that the future plans, estimates
or expectations contemplated by us will be achieved. Such
forward-looking statements are subject to various risks and
uncertainties and assumptions relating to our operations, financial
results, financial condition, business, prospects, growth strategy
and liquidity. Accordingly, there are or will be important factors
that could cause our actual results to differ materially from those
indicated in these statements, including, but not limited to, the
risk factors set forth in Item 1A. “Risk Factors” of FTAI’s Annual
Report on Form 10-K for the fiscal year ended December 31,
2023 and FTAI’s Quarterly Reports on Form 10-Q, as updated by
annual, quarterly and other reports FTAI files with
the SEC.
For further information, please contact:
Alan AndreiniInvestor RelationsFTAI Aviation
Ltd.(646) 734-9414aandreini@fortress.com
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