Vector Aerospace Corporation, a Canadian MRO firm, is in exclusive talks with EADS with a view to potential acquisition. This fits with EADS’s plans to diversify its business and expand its operations in North America and elsewhere. Toronto-based Vector has grown over the past decade into a respected independent provider of MRO (maintenance, repair and overhaul) services for both commercial and military customers. It has operations in Canada, the United States, Britain and Africa and its blue-chip customers include Bell Helicopters, Pratt & Whitney Canada, General Electric, Boeing and EADS subsidiaries. Moreover, Vector has very large United Kingdom operations, after taking over the British government’s aerospace defence repair agency.
It’s not clear who else might also be interested in acquiring the shares of Vector. After Vector said last year it was entertaining offers, reports emerged that interested companies included US rivals Triumph Group and L-3 Communications Holdings, as well as several private-equity groups. Other potentially interested parties could include privately held IMP Group International Inc. of Halifax, a significant Vector shareholder that tried unsuccessfully in 2009 to boost its stake to 53% from 37.3%.
Vector posted profit of $33-million on revenue of $545-million last year. It has about 2,500 employees.