Sikorsky Aircraft Corp., a subsidiary of United Technologies Corp. (NYSE: UTX), today announced an agreement to acquire Keystone Ranger Holdings, Inc., a privately owned U.S. company. Keystone specializes in full-service engineering, completion and technical support for commercial helicopters, and air medical flight operations. The finalization of the transaction is subject to the approval of the U.S. government and other regulatory authorities, as well as certain other conditions.
"Keystone is a great strategic fit for Sikorsky, providing us with proven leadership, a highly skilled workforce, and dedicated operations for the completion, customization, and support to meet the increase in demand for Sikorsky helicopters," said Sikorsky President Steve Finger. "This acquisition allows Sikorsky to meet growing demand for its products and services while adding flexible internal capabilities to meet increasing industry requirements for highly-customized commercial aircraft for a broad portfolio of customers. Our mutual strengths, combined competencies, and Keystone's excellent relationship with Sikorsky, as well as with Agusta, Bell, Eurocopter, MD Helicopter, Rolls Royce, Pratt and Whitney and Turbomeca provides a spectrum of aircraft and aftermarket services that will create new opportunities for the customers and employees of both organizations and creates value for our shareholders."
As part of the transaction, Sikorsky will also acquire the Keystone subsidiary, Composite Technology Inc. (CTI), a company headquartered in Grand Prairie Texas, with substantial rotor blade and composite structures overhaul capabilities with branch locations in Canada, Brazil, UK, and Singapore.
The leadership of both companies has approved the transaction. The deal is expected to close in the fourth quarter of this year. The terms of the acquisition were not disclosed. Keystone will continue to operate under the Keystone brand name as a wholly owned subsidiary of Sikorsky.
Keystone and CTI employ approximately 650 workers with primary operations in West Chester and Coatesville, Pennsylvania and Grand Prairie, Texas. The company's Flight Services Division operates a fleet of air medical transport helicopters at hospital base sites throughout the eastern United States. Keystone and CTI's consolidated annual sales for 2004 were approximately $100 million.
"In becoming a wholly owned subsidiary of Sikorsky, Keystone will benefit from the considerable momentum and resources of that company as well as its parent corporation, United Technologies," said David Ford, president of Keystone Helicopter. "This partnership will strengthen the competitive offerings of both organizations allowing Sikorsky to concentrate on increased demand for aircraft production while securing an even larger flow of completion services and aftermarket support opportunities for Keystone. It also allows Sikorsky to more broadly participate in the rapidly expanding demand for world class aftermarket, engineering and support services, as our industry continues to grow and mature."
Sikorsky, based in Stratford, Conn., is a world leader in rotorcraft design, manufacturing and service. The company's 2004 revenues totaled $2.5 billion.
Sikorsky is a subsidiary of United Technologies Corporation, of Hartford, Conn., which provides a broad range of high-technology products and support services to the aerospace and building systems industries. Sikorsky helicopters occupy a prominent international position in the intermediate to heavy range of 11,700 lb. (5,300 kg.) to 73,500 lb. (33,000 kg.) gross weight. The company's helicopters are used by all branches of the United States armed forces, along with military services and commercial operators in more than 40 nations.
Keystone Helicopter is one of the largest and oldest helicopter services companies in the United States. Founded in 1953, the firm operates a large technical services depot and completion center near Philadelphia. It also operates a large fleet of turbine helicopters in numerous locations across several eastern states, primarily in the air medical mission. The chairman of Keystone Ranger Holdings Inc. is Steve Townes, a well known aerospace entrepreneur. Additional information is available online at:
www.keystonehelicopter.com and at
This release includes "forward looking statements" as defined under securities laws, including statements about the future operations of the business. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ from the statements. These include risks and uncertainties inherent in closing an agreed transaction, in realizing the anticipated benefits of combining businesses and in obtaining additional business to increase revenues.