Hanwha Aerospace agrees to acquire U.S. engine parts company EDAC

[Courtesy of Hanwha Aerospace]

SEOUL -- As part of efforts to become a major player in the global aircraft engine parts market, Hanwha Aerospace has agreed to acquire an American company, which provides parts to major aircraft engine makers, for 351.6 billion won ($298 million). The South Korean company said the acquisition would be completed by the end of this year.

Hanwha Aerospace said in a regulatory filing on Monday that it would purchase 100 percent of EDAC Technologies Holding Company, which owns EDAC Technologies. "With this acquisition, we will continue to expand our engine parts business and achieve our vision of becoming the global number one partner for aircraft engines," CEO Shin Hyun-woo said, adding his company has upgraded its status to a risk-sharing partner with top engine makers.

Hanwha Aerospace, a Hanwha Group subsidiary, has invested heavily in its aircraft engine parts business since it was selected as a partner for Pratt & Whitney's risk and revenue sharing program.

Top engine parts companies are eligible for the risk sharing partnership (RSP) which distributes costs and revenue incurred during the development and sales of an aircraft engine in accordance with a participating party's share. Through the acquisition of EDAC, Hanwha hopes to establish a business platform in the U.S. and grow in the RSP field.

Hanwha Aerospace changed its name from Hanwha Techwin last year to be better recognized as an aircraft engine maker. Last year, its parent group announced an injection of four trillion won into enhancing the global competitiveness of its aerospace and defense businesses until 2022.

Lim Chang-won cwlim34@ajunews.com

Hanwha Aerospace agrees to acquire U.S. engine parts company EDAC

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