South Korean-based Hanwha Aerospace, part of the Hanwha Group, said on Monday it has signed a definitive agreement to take over the entire stake of U.S. aircraft engine manufacturer EDAC Technologies from Greenbriar Equity Group for about $300 billion. A final deal value will be determined in ensuing talks.
EDAC is a Connecticut-based component maker for aircraft engines and airframes, including integral rotor blades. Its clients include General Electric and Pratt & Whitney. A Hanwha Aerospace official said the business combination after the merger will make a difference in business performance by winning more orders and obtaining core technology. General Electric and Pratt & Whitney are the world’s largest aircraft engine manufacturers together with Rolls-Royce.
With the acquisition, Hanwha Aerospace will continue growing its aircraft engine component business to become a global leading partner in the aircraft engine market, said Hanwha Aerospace president Shin Hyun-woo, adding its status was recently elevated to a risk and revenue sharing program (RSP) global partner in the global aircraft engine market with high entry barriers based on its 40 years of focus on technology and quality.
The company expects the world’s aircraft engine parts market to grow an average of 6 percent a year to reach $54.2 billion in 2025.
Hanwha Group recently announced it will invest 4 trillion won ($3.37 billion) in its aircraft component and defense industry businesses by 2022
Separately, Shin reiterated his company has no interest in acquiring Asiana Airlines.
By Chun Gyung-woon and Minu Kim
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