ST Engineering’s aerospace arm acquires US flight school to grow pilot training business

Singapore, 20 May 2014 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that Vision Technologies Aerospace Incorporated (VT Aerospace) has acquired 100% equity interest in Aviation Academy of America, Inc., for a purchase consideration of US$811,238 (approximately $1.02m). Following the acquisition, Aviation Academy of America, Inc. will become a wholly owned subsidiary of VT Aerospace.

The purchase consideration for Aviation Academy of America was arrived at, after negotiations between the parties, taking into account the company’s past performance and future growth prospects.

The acquisition is part of the Group’s aerospace sector’s strategic initiative to grow its pilot training capacity and capabilities to support the rising global demand. Marketed as part of ST Aerospace’s global network with an expanded footprint into the US, the new business will work closely with the aerospace sector’s existing pilot training businesses in Singapore and Ballarat, Australia, to offer an integrated suite of pilot training services to customers around the world.

Based in New Braunfels,Texas, Aviation Academy of America is a US Federal Aviation Administration Part 141 approved flight school currently operating at New Braunfelsregional airport, 35 miles northeast of the aerospace sector’s San Antonio-based aircraft maintenance, repair and overhaul facility.

VT Aerospace, which owns five aerospace operating companies in Mobile, Alabama; San Antonio,Texas; Wethersfield, Connecticut; and Burlington, Washington; is a subsidiary of Vision Technologies Systems, Inc. (VT Systems), the US headquarters of ST Engineering.

The acquisition is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.