13th Nov 2008 07:01
November 13th 2008
ONTIC SIGNS EXCLUSIVE AND PERPETUAL LICENCE AGREEMENT
WITH HONEYWELL FOR SUPPORT OF 700 SERIES APUs
Ontic continues to expand its product portfolio
London, November 13th 2008 - BBA Aviation plc, announced today that Ontic Engineering and Manufacturing, Inc., the aerospace industry's leading provider of OEM-licenced Legacy Products, has signed an exclusive, perpetual, product life licence from Honeywell International Inc.. Under the terms of the licence, Ontic will produce and sell components and provide component repair services for Honeywell's 700 Series Auxiliary Power Units.
The initial consideration for the licence was £15.2m with an additional £8.8m payable in June 2009 once the transition of the products has been completed. A royalty on sales of 15% will also apply from 2024. The licence is expected to generate annual sales of approximately £10m and to be earnings enhancing in 2009. The gross assets acquired under the licence are approximately £3.8m.
The products are standard equipment on the Airbus A300-B2/B4, Boeing DC-10, MD-10, and MD-11 commercial aircraft and on the KC10 military transport with 450 aircraft currently in operation. These APUs have operated in the field for 37 years, accumulating some 16 million hours of operation. The customer base includes Commercial Airlines, Freighter Carriers, and Military Transports.
This new licence represents the continued expansion of Ontic's licensed product portfolio for the support of small turbine engine and APU products and adds to Ontic's 3,500+ products already supported under licence or acquisition. The products will be supported at Ontic's manufacturing facility in Chatsworth, California and at BBA Aviation's Dallas Airmotive facility in Dallas, TX. The transition of the product lines from Honeywell's Phoenix, AZ facility is to begin immediately.
Enquiries:
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BBA Aviation plc Andrew Wood, Finance Director 020 7514 3950 |
Brunswick Group LLP Simon Sporborg / Victoria Pease 020 7404 5959 |
Notes to Editors
BBA Aviation plc is a world leader in the provision of Flight Support and Aftermarket Services and Systems for business aviation, regional airline, military and commercial aviation operators, including FBO services, fueling, ground handling, turbine engine repair and overhaul and aviation components, landing gear and hydraulic systems. BBA has leading positions, well-known and reputable brands and a proven track record of organic and acquisition-led growth. BBA Aviation companies include Signature Flight Support, ASIG, Executive Beechcraft, Ontic, International Governor Services, APPH, Dallas Airmotive, Premier Turbines, H&S Aviation, International Turbine Service and Barrett Turbine Engine Company. For more information, please visit www.bbaaviation.com.
Ontic is a wholly owned subsidiary of BBA Aviation plc, with over 50 years of aerospace product manufacturing and aftermarket support experience. Ontic has licensed worldwide manufacturing rights from Honeywell, Hamilton Sundstrand, Goodrich, Moog, Parker, Eaton and a number of other aerospace original equipment manufacturers.
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