ST Engineering aerospace arm purchases IP assets

See what it got for $25.2m.

Singapore Technologies Engineering Ltd (ST Engineering) announced that further to the announcement on 17 May 2012 regarding Vision Technologies Aerospace Incorporated’s (VT Aerospace) investment in EcoServices, LLC (EcoServices) for a 50.1% equity interest, EcoServices has exercised the purchase option it entered into with Pratt & Whitney for the use and acquisition of intellectual property assets associated with the business.

The aggregate cost of the license and purchase option is US$25.2m (approximately S$31.15m). Following the exercise of the option, EcoServices will fully own, manage and protect its own portfolio of intellectual property assets required to operate the business. The purchase consideration took into account licence fee payments already made by EcoServices since the initial investment.

The exercise of purchase option 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.

ST Engineering said EcoServices is the largest provider of advanced technology engine wash services to both commercial and military aircraft operators with a current staff of approximately 50 specialists. EcoServices is marketed as part of the aerospace sector’s global maintenance, repair and overhaul network. At the same time, EcoServices will continue to benefit from Pratt & Whitney’s extensive experience in advanced engine technologies.