The Singaporean company, renowned for its services in in-flight catering and ground handling Sats, has recently finalized the sale of its military contractor division, Maytag Aircraft, for a substantial sum of $61.55 million.
Per Straits Times, Sat's sale of Maytag Aircraft, announced through a formal filing on March 16, follows its acquisition of the Worldwide Flight Services (WFS) Group in 2023.
For context, Maytag Aircraft provides essential services to the US Department of Defense, such as aircraft refueling, base operations support, and weather observation. While the acquisition of WFS was part of Sats' expansion strategy, selling Maytag Aircraft demonstrates its commitment to optimizing its operations and concentrating on its primary areas of expertise.
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Who Bought Sats' Maytag Aircraft?
The buyer is Albion River, a private direct investment firm that specializes in acquiring companies that provide highly technical defense products and services.
Sats' decision to divest Maytag Aircraft aligns with its strategic vision: to optimize operational efficiencies, leverage synergies, and enhance its overall financial performance.
According to Sats' unaudited financial information for the first half of 2024, Maytag Aircraft holds a book value of $76 million and a net tangible asset value of $24.7 million.
The sale of Maytag Aircraft is expected to result in a gain on disposal of approximately $1.6 million. Aside from that, net proceeds from the sale, totaling around US$45.6 million, will be utilized to deleverage and potentially expand the group's existing core business segments.
Sats' Chief Financial Officer, Manfred Seah, emphasized the strategic importance of this divestment. "This divestment is part of our efforts to rationalize our portfolio and concentrate on core businesses that have a strategic fit for the group."
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