FTAI Aviation has purchased Lockheed Martin Commercial Engine Solutions (LMCES) from Lockheed Martin Canada for $170 million on May 30, 2024. The acquisition is set to close in the second half of the year.
LMCES is a 526,000 square foot aircraft engine maintenance repair facility in Montreal, Quebec. It has extensive engine and piece-part repair capabilities for CFM56 engines, with a capacity for up to 900 CFM56 modules per year and houses three test cells onsite.
The acquisition is part of FTAI's enhancement of its maintenance, repair, and exchange (MRE) business.
""Acquiring Lockheed Martin Commercial Engine Solutions represents a significant milestone for FTAI as we expand our MRE offerings,"" said FTAI CEO Joe Adams. ""We know the facility well and greatly value the team’s technical expertise and commitment to quality.""
The company's subsidiary Fortress Transportation and Infrastructure Investors (FTAI LLC) had priced an underwritten public offering of 2.09 million ordinary shares for gross proceeds of approximately $171.4 million on May 28, 2024. Citigroup acted as sole underwriter for the offering. The company said it would not receive any proceeds from the sale of the shares. The public offering had been expected to close on the same day as the LMCES acquisition.
FTAI LLC offered to purchase up to $100 million of its outstanding 9.750% senior notes due 2027 on June 3, 2024. The tender offer will expire on July 2, 2024.
FTAI Aviation purchases LMCES for $170 million
