Eurocopter agrees to buy Vector Aerospace

Eurocopter is extending its North American footprint by signing an agreement with Vector Aerospace for the acquisition of the maintenance, repair and overhaul (MRO) company. 

A statement released by both companies on 28 March said the take-over bid, potentially worth some C$625 million ($639 million), centres on Eurocopter purchasing a minimum of 66% of Vector, although it is expected that the EADS subsidiary will purchase all shares.

Lutz Bertling, CEO of Eurocopter, said that Vector will be managed as an ‘independent multi-customer platform’, and it will therefore maintain its brand name.

‘The complementary nature of our worldwide network of subsidiaries and Vector Aerospace’s own network will enable us to develop our activities jointly, both faster and more efficiently,’ Bertling said.

The purchase of Vector will strengthen EADS’ helicopter business, increasing international, and more specifically, North American exposure, while keeping a good balance between military and civil activities, the company said.

As well as benefitting from Vector’s 2,500 employees, Eurocopter hopes to capitalise on the venture by positioning itself with ‘an extended presence’ in North America and the UK, said the statement.

A special committee from Vector recommended the agreement, concluding it was in the best interest of the company. It is expected that it will benefit from the global presence that Eurocopter has in 25 different countries, particularly in the fast-growing Asia and Latin America.

EADS lost out to Boeing for the highly-contested contract from the US Air Force (USAF) for the replacement of the service’s aging KC-135 aerial refuelling tankers in February.

After the company announced in March that it was not going to contest the USAF’s decision, EADS North America CEO Sean O’Keefe said that despite the regret felt for losing the contract, the experience had strengthened the company’s position in the US marketplace.

Eurocopter has improved its efforts into different marketplaces through several joint ventures in recent years, including: the formation of Eurocopter Vostok in Russia in 2008; the expansion of the 10% of shares previously held in McAlpine to 100% in 2007 to form Eurocopter UK; and its subsidiary Helibras in Brazil, acquired in 2006.