Quickstep acquires Boeing Australia component repairs

Quickstep Holdings Ltd. (Sydney, Australia) announced on Nov. 13 that it has agreed to the terms for the purchase of Boeing Defence Australia’s aerospace maintenance, repair and overhaul (MRO) capability based in Tullamarine, Victoria, Australia. 

Under the terms of the Asset Purchase Agreement, Quickstep (through its wholly-owned subsidiary, Quickstep Aerospace Services Pty Ltd.) will acquire operating assets plus inventories and certain customer contracts from Boeing Australia Component Repairs Pty Ltd. (BACR).  Quickstep will also make offers to certain BACR employees and will take on employee liabilities for transferring employees and certain other business liabilities.

Completion is expected around the end of 2020 and is subject to Quickstep obtaining certain necessary regulatory approvals related to the operation of the facility. It is anticipated that the acquisition will be earnings per share (EPS) accretive by 2021.

BACR manages a wide range of composite, bonded and conventional metal aircraft structures for both commercial and military operators. The team already has experience working with Boeing, Airbus (Toulouse, France), Embraer (São José dos Campos, Brazil) and Bombardier (Montréal, Canada) aircraft, F/A-18A/B Classic Hornets, F/A-18F Super Hornets, C-130J Hercules and CH-47 Chinooks. Quickstep intends to leverage its existing relationships and capabilities to broaden the scope of MRO work offered to include F-35 and other military and commercial work. Key approvals include all major regulatory bodies — CASA, FAA, EASA and DASR — and Quickstep is working towards obtaining these certifications.

Separate to the Asset Purchase Agreement, Boeing Defence Australia and Quickstep have agreed to commence discussions on a long-term agreement that, if entered into, would develop a broader, ongoing collaboration in both the military and commercial aerospace segments, covering new production and sustainment of existing aircraft types.

“The acquisition of this important national capability aligns well to our business strategy, positions us to grow our defence sustainment business and opens up new opportunities in the high-value commercial aftermarket as we move toward post-pandemic recovery,” says Mark Burgess, CEO of Quickstep.