Under the terms of the Asset Purchase Agreement, Quickstep (through its wholly-owned subsidiary, Quickstep Aerospace Services) will acquire operating assets plus inventories and certain customer contracts from Boeing Australia Component Repairs (BACR). Quickstep will also make offers to certain BACR employees and will take on employee liabilities for transferring employees and certain other business liabilities.
A top tier Australian bank has committed to funding the purchase as part of a refinancing package for Quickstep’s existing long term loan, offering a reduced margin.
Completion is expected around the end of 2020 and is subject to Quickstep obtaining certain necessary regulatory approvals related to the operation of the facility. It is anticipated that the acquisition will be EPS accretive by year two.
BACR manages a wide range of composite, bonded and conventional metal aircraft structures for both commercial and military operators using leading edge equipment and state-of-the-art MRO know-how. The team has recent experience working with Boeing, Airbus, Embraer and Bombardier aircraft, F/A-18A/B Classic Hornets, F/A-18F Super Hornets, C-130J Hercules and CH-47 Chinooks. Quickstep intends to leverage its existing relationships and capabilities to broaden the scope of MRO work offered to include F 35 and other military and commercial work. Key approvals include all major regulatory bodies – CASA, FAA, EASA and DASR and Quickstep is working towards obtaining these certifications.
Separate to the Asset Purchase Agreement, Boeing Defence Australia and Quickstep have agreed to commence discussions on a long term agreement that, if entered into, would develop a broader, ongoing collaboration in both the military and commercial aerospace segments, covering new production and sustainment of existing aircraft types.
Commenting on the acquisition Mark Burgess, CEO of Quickstep said:
“We are delighted to soon be welcoming highly capable aerospace employees from the BACR business to Quickstep. The acquisition of this important national capability aligns well to our business strategy, positions us to grow our defence sustainment business and opens up new opportunities in the high value commercial aftermarket as we move toward post-pandemic recovery.”
Scott Carpendale, vice president and managing director of Boeing Defence Australia, said:
“We’re pleased that this agreement will offer Quickstep – a well-established and highly capable Australian company – the ability to grow its unique sovereign capability to the benefit of regional commercial and Quickstep CEO and MD, Mark Burgess and Boeing Defence Australia VP and MD, Scott Carpendale signing the Asset Purchase Agreement. defence customers,”
“We look forward to continuing to work with Quickstep on new opportunities to increase their support of Boeing customers locally and globally.”
This announcement was approved by the Board of Quickstep Holdings Limited.