Singapore-based MRO specialist SIA Engineering (SIAEC) has signed a preliminary agreement with SR Technics Switzerland to acquire SRT Malaysia, the latter’s local subsidiary unit. SIAEC may potentially acquire a part or the whole of SRT Malaysia.
SR Technics had previously reinstated its realignment plan to shift its operations from component repair to concentrate on engine services and line maintenance. It has also separated its component support activities into a new entity, Strade, which focuses on areas other than repair. Established in 2014, SRT Malaysia specializes in providing component repair, testing, and overhaul services with a focus on the Airbus A320, A330, A340, and the Boeing 737NG aircraft in the Asia-Pacific region and abroad.
Both companies may enter into negotiations on the terms of the transaction after SIAEC performed its due diligence on SRT Malaysia. To date, SIAEC has completed a review of synergies on the benefits of the acquisition to its component repair and overhaul activities, as well as fleet-management program.
(Sources: The Edge Markets; Aviation Week)