Small UK aerospace firm, Euravia Engineering and Supply, has finalised a deal to sell the company to a Canadian counterpart.
Euravia which operates out of Kelbrook, a town north-west of Leeds, owns a small factory producing engines and gas turbines for a number of light aircraft as well as helicopters. In addition, they supply maintenance and engine overhaul solutions to a number of companies in the civil aviation and defence fields.
The company will be sold to Magellan Aerospace Corporation, a larger firm based out of Ontario, for £30m ($56.5m).
This amount could rise due to contractual stipulations which allow for an increased buyout price in the face of strong earnings by Euravia over the next two years.
In 2014 alone, the company generated revenues of £14m, which if repeated would likely lead to an increase in the buyout price.
Euravia was first established 1988 by Dennis Mendoros, who continues to run the company. Over this time, it has opened a number of new facilities and broadened its engine manufacturing and repair capacity.
Euravia is very positive about the deal, hoping it will enable its operation the flexibility to continue to expand.
“The acquisition by Magellan leads Euravia to the next development level, opening potential new business opportunities in North America and enabling us to offer enhanced customer support and dedicated aftersales service. In addition, Magellan’s global reach augments Euravia’s existing partnerships in the Middle East, Asia-Pacific, and across Europe,” said company founder Mendoros in a press statement.
Magellan Aerospace was interested in purchasing Euravia in order to further develop its engine maintenance operations and diversify away from the North American market.
“The acquisition of Euravia complements Magellan’s existing repair and overhaul capability in North America. Euravia has an excellent reputation for providing high quality MRO capabilities, supporting a global customer base, and delivering exceptional customer service,” said Magellan’s President and Chief Executive Officer, Phillip Underwood.
There remains no word yet on whether the acquisition will lead to any downsizing or job losses at Euravia.
