FTAI Aviation Ltd. (FTAI) announced on Thursday its agreement to acquire Lockheed Martin Commercial Engine Solutions (LMCES) from Lockheed Martin Canada Corp. for $170 million.
The acquisition, which is subject to customary regulatory approvals, is expected to close in the latter half of 2024.
LMCES operates a 526,000 square-foot facility in Montreal, Quebec, dedicated to aircraft engine maintenance and repair, with comprehensive capabilities for servicing CFM56 engines and their components.
FTAI, the largest customer of LMCES, and LMCES established "The Module Factory" at this facility in 2020 to distribute CFM56 modules globally. The facility can handle up to 900 CFM56 modules annually and includes three test cells on-site.
This acquisition will bolster FTAI's Maintenance, Repair, and Exchange (MRE) business and establish permanent engine and module manufacturing capabilities in Canada.
