Lockheed Martin closes deal to acquire stake in Mubadala unit
Monday 17 January 2011 7:56 AM
Gulf News: Abu Dhabi-based Mubadala Development Company said yesterday the Advanced Military Maintenance, Repair and Overhaul Centre (Ammroc) had closed a transaction in which Lockheed Martin acquired an equity stake in Ammroc, joining shareholders Sikorsky Aerospace Services, which owns an equivalent share, and Abu Dhabi Aircraft Technologies (ADAT), the principal shareholder.
"This means Ammroc can offer MRO (maintenance, repair and overhaul) services on wider platforms. Earlier Ammroc could service on the Sikorsky platform. Now with this deal Ammroc will be able to provide service on Lockheed Martin's platform," a person familiar with the developments told Gulf News by telephone.
Commenting on the development, Humaid Al Shemmari, Chairman of ADAT and Ammroc said: "Lockheed Martin's involvement will expand Ammroc's capabilities and complement our existing service offerings to our customers."
Mubadala didn't disclose the size of the deal and also didn't say what the exact shareholder pattern of Ammroc was.
"The addition of Lockheed Martin brings significant aerospace sustainment and service capabilities allowing Ammroc to further expand its service offerings in the fixed-wing market segment," Mubadala said in a statement.
"Ammroc will provide innovative platform solutions for all fixed and rotary-wing aircraft operated by the UAE Armed Forces, to ensure guaranteed aircraft readiness, deployability, improved safety and self-reliance, thus enabling operational, humanitarian and peacekeeping missions," it added.
"With the combined strength of the partners and an aggregate investment that exceeds $800 million, Ammroc draws on decades of experience and expertise in aerospace engineering, material support, logistics, maintenance, component repair, overhaul and training, to deliver a fully integrated MRO support programme by a single provider," said Mubadala.
Saj Ahmad, a London-based aviation analyst, told Gulf News that with this deal Abu Dhabi will strengthen its aerospace maintenance and manufacturing base.
"Lockheed's shareholding propels Abu Dhabi right into the heart the US defence budgets by way of government contracts, many of which are worth billions of dollars and are long-term deals," said Ahmad.
Also See