Australian defence manufacturer ASDAM has revealed it will acquire global maintenance company TAE Aerospace in a hugely significant deal for the local industry.
Under the agreement, the CEO of TAE, Andrew Sanderson, will be appointed CEO of ASDAM and join the board. ASDAM also confirmed the earlier announced acquisition of RUAG Australia.
ASDAM is Australia’s largest supplier to the F-35 program, and its existing partners include Lockheed Martin, BAE Systems, Honeywell, and Pratt & Whitney. Its larger group already includes MRO Marand and component manufacturer Levett.
The CEO of Marand and Levett, Rohan Stocker, is expected to continue to serve as an executive director on the ASDAM board.
Operating from 20 locations in Australia and the United States, ASDAM counts approximately 1,000 employees.
“Marand, Levett, TAE and RUAG Australia are all outstanding businesses in their own right. Their combination within ASDAM creates a leading Australian engineering and sustainment partner across aerospace and defence programs,” Steve Sargent, chairman of ASDAM, said.
“ASDAM’s role is to provide continued access to capital and resources to build and grow Australian sovereign industrial capability.”
ASDAM offers services across engineering, advanced manufacturing and sustainment in the defence and aerospace markets.
According to Sanderson, the recent acquisition complements ASDAM’s core offerings.
“TAE and RUAG Australia’s focus on sustainment of aerospace and defence platforms will be highly complementary to the design, engineering and advanced manufacturing capabilities of Marand and Levett in the ASDAM Group,” he explained.
“The expanded resources of the group will enable each of the businesses to invest and grow their capabilities to support our global defence, aerospace and industrial customers.”
ASDAM is majority owned by funds managed by CPE Capital.
The surprise double acquisition comes a week after RUAG Australia was appointed an authorised service centre for F-35 wheels and brakes following an agreement with Honeywell International.
The agreement between the two companies will see RUAG Australia become a maintenance, repair, and overhaul (MRO) authorised service centre for the Asia Pacific Wheels and Brakes program for the F-35.
According to a release from RUAG Australia, the agreement is expected to enhance the company’s sovereign capability as the product support provider for F-35 wheels and brakes.
The creation of an MRO-authorised service centre by Honeywell will be exclusive to RUAG after receiving the F-35 Joint Program Office’s Authority to Proceed.
As part of the agreement, RUAG Australia is expected to transition its defence and aerospace team from older programs to the F-35 Global Support System.