Latécoère, a “Tier 1” international partner of the world's major aircraft manufacturers, announces today it has entered into a definitive Arrangement Agreement to acquire all of the issued and outstanding common shares in the capital of Avcorp, a Canadian domiciled company that builds major airframe structures for some of the world's leading aircraft companies.

Avcorp is an aerostructures supplier of wing sub-assemblies, large scale composite parts and after-market services, with exposure to key platforms including F-35, B737 Max, B767 and B787. Avcorp generated CAD$99 million in revenue in 2021 with over 450 skilled employees. The company has three major manufacturing sites in Delta, British Columbia (metallic and composite aerostructures assembly and integration), Gardena, California (advanced composite aerostructures fabrication capabilities) and Burlington, Ontario (structural component repair services for commercial aircrafts).

The acquisition of Avcorp is part of Latécoère's 2025 roadmap to achieve profitable growth as an active consolidator of the aeronautics industry. In this context, the Company has already completed a number of acquisitions in 2021 (Bombardier EWIS, TAC and SDM) as well as announced the acquisition of MADES, which is subject to the approval by the Spanish Council of Ministers pursuant to defence foreign direct investment regulations and is expected to close during Q2 2022. The acquisition of Avcorp continues this consolidation, strengthening the Group's Aerostructures business by way of: growing North American defence exposure; diversifying Latécoère's platform exposure, with the addition of the B737 Max and F-35; strengthening North American manufacturing presence and improving geographic proximity to North American customers; broadening its aerostructures capabilities, with the addition of wing sub-assemblies and large scale composite capabilities; expanding its Boeing Company and Bombardier relationships, as well as gaining new commercial relationships with BAE Systems, Lockheed Martin and Subaru.

Thierry Mootz, Group Chief Executive Officer, stated: “In 2021 Latécoère has actively participated in aerospace market consolidation, which continues into 2022 with the acquisition of Avcorp. Avcorp is an excellent business with a track record of delivering first class performance. Its successful management team share our approach and vision for the enlarged business. The two businesses have complementary client bases, geographical strengths and service offerings. There are exciting opportunities to combine Avcorp's expertise in defence and strong presence in North America with Latécoère's end-to-end technical capabilities and global footprint. Thanks to this new acquisition the Group is well positioned to serve the aerospace industry with innovative solutions for a sustainable world and on track to deliver its Ambition 2025 growth plan. On the top of rescaling the Group, it will reposition the company on profitable growing segments.”

Commenting on the transaction Amandeep Kaler, CEO of Avcorp, said: “This transaction represents the culmination of an extended strategic review through a very challenging business environment to find a partner with the financial strength and expanded customer base to build upon Avcorp's developed expertise in composite aerostructure assembly and integration. Along with an attractive premium to the weighted average share price, the transaction provides a liquidity event for all of our shareholders. In addition, Avcorp's stakeholders will benefit from the enhanced financial position, broader customer base and improved competitive position resulting from the integration with a Tier 1 international partner.”