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UK acquisition closes – Global growth platform for Vector Aerospace

April 1, 2008, Toronto - Vector Aerospace International Ltd., has completed the acquisition of the U.K. Ministry of Defence Defence Aviation and Repair Agency Rotary Wing and Components businesses.


April 1, 2008
By Corrie


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April 1, 2008, Toronto – Vector Aerospace Corporation
announced today that its wholly-owned subsidiary, Vector Aerospace
International Ltd., has completed the acquisition of the United Kingdom
Ministry of Defence (MOD) Defence Aviation and Repair Agency (DARA) Rotary
Wing and Components businesses for consideration of (pnds stlg)17 million. The
assets acquired include net working capital of (pnds stlg)13.5 million.
    

The Fleetlands Rotary business, which provides maintenance, repair and
overhaul support for the MOD Chinook (CH-47), Lynx and Sea King helicopters,
will be renamed Vector Aerospace Helicopter Services Fleetlands. The
Almondbank Components business, which provides maintenance, repair and
overhaul and component support for these and other helicopter and fixed wing
platforms within the United Kingdom, both for MOD and other customers, will be
renamed Vector Aerospace Component Services Almondbank
    

The acquisition expands Vector's customer base, provides access to new
markets in the defence sector, adds maintenance, repair and overhaul (MRO)
skills and capabilities and offers potential to build a European centre of
excellence in helicopter maintenance.
    

The unaudited revenue of the DARA acquired business for the twelve months ended March 31, 2008 as indicated by the seller is approximately (pnds
stlg)80 million (Cdn $160 million). The acquisition is expected to make
positive earnings contributions to Vector for the balance of 2008. It is
management's objective that operating margins of the acquired businesses will
be consistent with Vector's overall results after an integration period. This
integration is expected to take eighteen to twenty four months. and is
expected to involve various cash outlays.
    

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"The servicing of helicopter structures, components and engines is a core
competency for Vector. We have a breadth of MRO capabilities within our
Canadian rotary wing division, including military helicopters", said Donald
Jackson, Chairman, President and Chief Executive Officer of Vector Aerospace
Corporation. "The DARA facilities offer a significant opportunity to extend
our core expertise in helicopter maintenance and military service across our
existing and newly acquired business units and to add value for our
customers."
    
Vector Aerospace Corporation, an independent provider of aviation repair
and overhaul, supplies services to commercial and military customers for
various types of gas turbine engines, components and helicopter structures
from facilities in Canada, the United States, the United Kingdom and South
Africa. The Company's shares trade on the Toronto Stock Exchange under the
symbol RNO.


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