Latecoere Completes the Acquisition of Avcorp

TOULOUSE, France--(BUSINESS WIRE)--Regulatory News:

Latecoere (Paris:LAT), a Tier 1 partner of the world's largest aircraft manufacturers, announces today the completion of the acquisition of Avcorp Industries Inc., a Canadian-domiciled company that builds major airframe structures for leading aircraft manufacturers.

The acquisition of Avcorp strengthens the Group's Aerostructures business through the access to key aircraft platforms (B737 Max and F-35), an expanded product portfolio including wing sub-assemblies, and the production capabilities for large scale composite parts.

More broadly, this acquisition is part of Latecoere's 2025 roadmap to achieve profitable growth and participate in global aerospace industry consolidation. It follows a number of external growth transactions initiated by the Group in 2021 and continued into 2022 with the acquisition of MADES and the investment in Figeac Aéro’s Mexican activities co-located with Latecoere Mexico.

These acquisitions have enabled Latecoere to:

- Strengthen its manufacturing presence in North America and improve geographic proximity to customers such as Bombardier and Boeing; and

- Significantly increase the Group’s exposure to the defence sector, with the Group's revenues increasing from circa 5% to 15% in this profitable and growing market.

Thierry Mootz, Group Chief Executive Officer, stated: "The acquisition of Avcorp completes an industrial footprint that now allows Latecoere to operate on both sides of the Atlantic at the best possible cost, with the objective of better serving its customers.”

RBC Capital Markets and Société Générale acted as financial advisors and Goodmans LLP and Kirkland & Ellis LLP acted as legal counsels to Latecoere on the acquisition of Avcorp.

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About Latecoere

As an international group and Tier 1 partner of the world's leading aircraft manufacturers (Airbus, Boeing, Bombardier, Dassault, Embraer), Latecoere serves aerospace with innovative solutions for a sustainable world. The Group operates in all segments of the aerospace industry (commercial, regional, business and military aircraft), in two business areas:

• Aerostructures (46% of sales): fuselage sections and doors.
• Interconnection Systems (54% of sales): wiring, electrical furniture and onboard equipment.

As of December 31, 2021, the Group employed 4,764 people in 14 countries. Latecoere, a public limited company with a capital of €133,912,589.25 divided into 535,650,357 shares with a par value of €0.25, is listed on Euronext Paris - Compartment B, ISIN Code: FR0000032278 - Reuters: AEP.PA - Bloomberg: AT.FP