AAR Acquires Telair International
In a $280 million deal AAR has acquired Telair International and Nordisk Aviation Products. “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,” Rick Poulton, AAR’s CFO, told AIN. Simi Valley, Calif.-based Telair designs, manufactures and supports cargo-loading systems for widebody and narrowbody aircraft. “Telair has a substantial, well established position on the world’s most popular current and next-generation passenger and freighter models such as the Boeing 747-8, the Airbus A330/340 and the soon-to-be A350,” Poulton said. The company also manufactures systems and components for the Boeing 737, Airbus A320 series and converted Boeing 767-300s and 747-400s. According to Poulton, approximately 40 percent of Telair’s revenue is generated from aftermarket spares and support for its installed base of cargo systems. Nordisk designs and manufactures heavy-duty pallets and lightweight cargo containers for airlines from facilities in Norway and China and also serves the aftermarket. AAR estimates the acquisition will generate more than $225 million in revenue in Fiscal Year 2013.