- Industrial stock Quickstep (QHL) is set to purchase a subsidiary from aerospace giant Boeing
- The ASX-lister announced today it would acquire Boeing Australia Component Repairs (BACR) through an asset purchase agreement
- BACR creates and maintains metal parts found in commercial and military aircraft out of a factory in Tullamarine, Victoria
- Under the deal, Quickstep will buy all of BACR’s operating assets, inventories, and some customer contracts for $2.64 million in cash
- While QHL hasn’t named its financial backer, the company told the market a “top-tier Australian bank” would fund the buy
- As long as Quickstep obtains the necessary approvals to finalise the purchase, BACR should come under the company’s wing before 2021
- On the back of the news, QHL shares rose 4.94 per cent to trade for 8.5 cents
Industrial stock Quickstep (QHL) is set to purchase a subsidiary from aerospace giant Boeing.
The ASX-lister announced today it would acquire Boeing Australia Component Repairs (BACR) through an asset purchase agreement.
BACR specialises in aerospace maintenance, repair and overhaul for Boeing Defence Australia. Essentially, it creates and maintains the metal components found in commercial and military aircraft out of a factory in Tullamarine, Victoria.
Under the deal, Quickstep will buy all of BACR’s operating assets, inventories, and some customer contracts for $2.64 million in cash. That payment is due in full when the buy is finalised, forecast to occur towards the end of this year.
While QHL hasn’t named its financial backer, the company told the market a “top-tier Australian bank” would fund the buy.
As long as Quickstep obtains the necessary approvals to finalise the purchase, BACR should come under the company’s wing before 2021. However, if for whatever reason the company fails to complete the deal, it will need to pay BACR a $2 million termination fee.
Beyond the purchase agreement, both companies want to work together long term on a broader collaboration, potentially creating components for new commercial and military aircraft.
Founded in 2001 as a family business, Quickstep describes itself as Australia’s leading carbon fibre composite manufacturer. The Australian company specialises in creating carbon fibre products for the defence and aerospace industry.
“We are delighted to soon be welcoming highly capable aerospace employees from the BACR business to Quickstep,” CEO Mark Burgess said today.
The acquisition of this important national capability aligns well to our business strategy, positions us to grow our defence sustainment business and opens up new opportunities in the high-value commercial aftermarket as we move toward post-pandemic recovery,” the Quickstep CEO continued.
Boeing Defence Australia’s Managing Director and Vice President, Scott Carpendale, echoed Mark’s sentiments.
“We’re pleased that this agreement will offer Quickstep – a well-established and highly capable Australian company – the ability to grow its unique sovereign capability to the benefit of regional commercial and defence customers,” Scott stated.
“We look forward to continuing to work with Quickstep on new opportunities to increase their support of Boeing customers locally and globally,” he continued.
Nevertheless, today’s announcement comes with some less prospective news: because of COVID-19’s ongoing financial impacts, Quickstep has chosen to withdraw its FY21 guidance. It comes after the manufacturer posted $3.9 million in net profit in the 2020 financial year — up 44 per cent on FY19’s statistics.
On the back of the news, QHL shares soared 4.94 per cent to trade for 8.5 cents at 10:57 am AEDT.