MB Aerospace signals move into Asia with Taiwan deal

Takeover will increase employee numbers to 1,700+ Platform for expansion across wider Asian region

International aerospace group MB Aerospace has signalled a major push into the Asian market with a deal to buy a Taiwanese firm.

The Motherwell-headquartered company has agreed to buy Asian Compressor Technology Services (ACTS) which specialises in the repair of aero-engine components.

The move gives MB Aerospace, which was spun out of venerable engineering business Motherwell Bridge in 2007, a footprint in the rapidly-growing Asian market.

With ACTS employing more than 100 staff, the acquisition will also take the company’s overall employee numbers to over 1,700.

ACTS was founded in 1995 as a joint venture by Pratt & Whitney, China Airlines and the Singapore Airlines Engineering Company to provide in-house repair of components within the turbine and compressor sections of aeroengines.

Craig Gallagher, MB Aerospace’s chief executive, said the acquisition would significantly expand its capabilities in the repair sector and also provided it with a “crucial” geographical presence in the fast-growing Asian market.“this is a hugely exciting and positive deal for everyone involved. Taiwan is a global centre for manufacturing innovation and the Taiwan government’s stated aim of supporting aerospace manufacturing is also a very attractive factor for us as we look to expand operations there. ACTS provides a tremendous platform for further growth in Asia,” he said.

“Expanding our capabilities in the turbine and compressor sections of the aero-engine is a key strategic objective for MB Aerospace and we have ambitious plans for further growth and investment.”

Gallagher said the deal comes at an exciting time for the industry with the global aircraft fleet projected to double in the next 20 years and much of the increase in demand coming from growth in Asian air traffic.

The business will trade as MB Aerospace ACTS (Taiwan) once legal completion has been finalised, which is expected to be in January.

Gallagher led a management buyout of MB Aerospace from Motherwell Bridge in a deal backed by Lloyds TSB Development Capital.

US private equity firm Arlington Capital Partners then acquired the Lloyds stake in 2013 and later sold it on to Us-based Blackstone in 2015.

The company has grown significantly and now operates across eight locations in Europe and the US.

businessdesk@scotsman.com