DRB-Hicom unit to buy Spirit AeroSystems Malaysia for RM426mil
PETALING JAYA : DRB-Hicom Bhd's wholly-owned subsidiary Composites Technology Research Malaysia Sdn Bhd (CTRM) will acquire aerospace manufacturer Spirit AeroSystems Malaysia Sdn Bhd for US$95.2 million (RM426.1 million).
In a statement on Bursa Malaysia, DRB-Hicom said the deal would strengthen CTRM's aerostructure expertise and competitive position in the aerospace sector.
Spirit Malaysia supplies components for Airbus and Boeing aircraft, including the A220, A320, A350, 737 and 787 programmes.
For the financial year ended 2024, it posted a profit after tax of RM70.1 million on revenue of just over RM1 billion, with net assets of RM770.5 million.
CTRM manufactures composite aerostructures for commercial and military aircraft such as the Airbus A320, A350, A380 and A400M.
'At the same time, CTRM will enhance its presence across the supply chain and be better positioned for long-term competitiveness and sustainable growth in an increasingly challenging and dynamic aerospace market,' DRB-Hicom said in a statement today.
The addition of Spirit Malaysia will also boost CTRM's 'ability to bid for integrated work packages' while 'unlocking new contract opportunities', it added.
It said the move also supported government efforts to position Malaysia as a regional aerospace hub under the New Industrial Master Plan 2030 and Malaysian Aerospace Blueprint 2030.
If the European Commission and the US Federal Trade Commission do not approve the acquisition, or if any government authority opposes CTRM's purchase, the seller will pay a termination fee of US$7 million.
AmInvestment Bank is advising DRB-Hicom on the deal.
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