Hanwha Aerospace announced that it has signed a contract to acquire 100% of the shares of EDAC Technologies on June 6, 2019. EDAC is an aero-engine component company located in Connecticut. The specific amount paid for the acquisition will be determined through further negotiations, but the acquisition is estimated to be worth approximately $300 million.

The acquisition is part of Hanwha Aerospace's strategy of looking for M&A opportunities that accelerate business competencies needed to achieve its vision to become "The #1 Global Partner in Aircraft Engines".

There are high expectations that gaining a physical presence in the U.S., near major customers such as Pratt & Whitney and General Electric, will bring positive benefits for Hanwha Aerospace, including increased order intake and an expanded product portfolio. In addition, Hanwha Aerospace will be able to strengthen its business competitiveness by acquiring knowledge of highly complex machining techniques and a variety of new products.

This acquisition will also allow Hanwha Aerospace to secure a stronger business platform in the U.S. market as well as contributing development and engineering competencies, which are essential to becoming a top-tier supplier.

Hanwha Aerospace CEO Mr. Hyunwoo Shin said, "The aircraft engine manufacturing industry has extremely high barriers to entry, and based on 40 years of accumulated advanced technology and quality, our position within the aircraft engine manufacturing market and as a global risksharing partner (RSP) has risen significantly", emphasizing that "the acquisition of EDAC will allow us to continuously expand our engine component business and take us closer to achieving our vision to become "The #1 Global Partner in Aircraft Engines".

Continuous growth of the civil aviation sector is anticipated due to favorable passenger and cargo trends. The market size for global aircraft engine components is expected to reach $54.2 billion by 2025, growing at a 6% rate annually. In light of these industry trends, Hanwha Group has expressed its intention to strengthen global competitiveness and expand its presence in the aircraft components and defense sectors by investing up to WKRW W4 trillion through 2022.

Hanwha Aerospace first entered the aircraft engine business in 1979 through its gas turbine engine depot maintenance program. Since then, the company has grown to become South Korea's only gas turbine engine manufacturer and has assembled more than 8,600 engines as of last year.