FTAI Aviation Ltd. (NASDAQ: FTAI) announces entry into an agreement to purchase Lockheed Martin Commercial Engine Solutions (“LMCES”) from Lockheed Martin Canada for a purchase price of $170 million. The acquisition is subject to customary regulatory approvals and is anticipated to close in the second half of 2024.

LMCES is a 526,000-square-foot aircraft engine maintenance repair facility located in Montréal, Quebec, with extensive engine and piece-part repair capabilities for CFM56 engines. FTAI, LMCES’s largest customer, and LMCES established The Module Factory™ at the facility in 2020 to distribute CFM56 modules globally. The facility has a capacity for up to 900 CFM56 modules per year and houses three test cells on-site.

This acquisition will further enhance FTAI’s Maintenance, Repair, and Exchange (MRE) business, and create permanent engine and module manufacturing capabilities in Canada. FTAI will continue to expand its module customer base, which currently includes over 50 airlines and lessors globally. Additionally, FTAI expects to establish a center of excellence in Montréal for piece-part repairs, serving both its own operations, including the Used Serviceable Material business, and third-party customers.

“Acquiring Lockheed Martin Commercial Engine Solutions represents a significant milestone for FTAI as we expand our MRE offerings,” said Joe Adams, CEO of FTAI. “We know the facility well and greatly value the team’s technical expertise and commitment to quality. We are excited to grow the shop’s piece-part repair capabilities and continue delivering modules and engines to the aftermarket from a world class facility in Montréal.”

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