Latécoère to Increase Its Exposure to North American Defence and Commercial Aircraft Segments Through Acquisition of Avcorp

Regulatory News:

Latécoère (Paris:LAT) (the “Company” or the “Group”), a "Tier 1" international partner of the world's major aircraft manufacturers, announces today it has entered into a definitive Arrangement Agreement to acquire all of the issued and outstanding common shares in the capital of Avcorp Industries Inc. (“Avcorp”), a Canadian domiciled company that builds major airframe structures for some of the world’s leading aircraft companies.

Avcorp is an aerostructures supplier of wing sub-assemblies, large scale composite parts and after-market services, with exposure to key platforms including F-35, B737 Max, B767 and B787. Avcorp generated CAD$99 million in revenue in 2021 with over 450 skilled employees. The company has three major manufacturing sites in Delta, British Columbia (metallic and composite aerostructures assembly and integration), Gardena, California (advanced composite aerostructures fabrication capabilities) and Burlington, Ontario (structural component repair services for commercial aircrafts).

Strategic Fit

The acquisition of Avcorp is part of Latécoère’s 2025 roadmap to achieve profitable growth as an active consolidator of the aeronautics industry. In this context, the Company has already completed a number of acquisitions in 2021 (Bombardier EWIS, TAC and SDM) as well as announced the acquisition of MADES, which is subject to the approval by the Spanish Council of Ministers pursuant to defence foreign direct investment regulations and is expected to close during Q2 2022. The acquisition of Avcorp continues this consolidation, strengthening the Group’s Aerostructures business by way of:

• Growing North American defence exposure
• Diversifying Latécoère’s platform exposure, with the addition of the B737 Max and F-35
• Strengthening North American manufacturing presence and improving geographic proximity to North American customers
• Broadening its aerostructures capabilities, with the addition of wing sub-assemblies and large scale composite capabilities
• Expanding its Boeing Company and Bombardier relationships, as well as gaining new commercial relationships with BAE Systems, Lockheed Martin and Subaru

The Avcorp management team is led by Amandeep Kaler, CEO, who has a solid track record in the industry and has been working within the company for over 20 years. This team will continue to manage the company and support business activity.