Airbus expands operations with Satair

EADS has for the second time this year dipped into its cash pool to make a services-oriented acquisition for one of its operating units, with a $504 million deal to acquire Satair to bolster Airbus’s service offering.

The move – along with acquisition of Vector Aerospace for Eurocopter – is part of EADS’s wider strategy to boost service revenue across the company.

EADS already has agreement from 16% of Satair shareholders for the deal and the Danish company says it will recommend approval of the deal to its other shareholders following an auction process. The deal is expected to close in the fall.

In a statement announcing the deal, Airbus executive vice president for customer service, Didier Lux says “this acquisition is a logical step towards our vision to become one of the leading companies in integrated aftermarket services for our customers.”

EADS is paying a 94.3% premium over the March 28 closing price for Satair, which is the last day of trading before the company said it had received interest in a takeover. EADS says it is drawing on its cash reserved to pay for the deal.

Satair estimates it generated $403 million in revenue in the fiscal year ended June 30, with the money coming equally from activities in Europe, Asia, and the U.S.

EADS chief of strategy, Marwan Lahoud adds that “Satar has proven resilient during the financial crisis and has been able to show a continuous profitable growth.”