DRB-HICOM Bhd’s wholly-owned subsidiary, Composites Technology Research Malaysia Sdn Bhd has entered into a conditional share purchase agreement to acquire the entire equity interest in Spirit AeroSystems Malaysia Sdn Bhd (Spirit MY) for a purchase consideration based on an enterprise value of RM403.6 million (USD95.2 million x 4.24 BNM exchange rate)
The deal, signed with Spirit AeroSystems, Inc. and Spirit AeroSystems International Holdings, Inc., will see Spirit MY become a wholly-owned subsidiary of CTRM upon completion. Spirit MY will also enter into transition services agreements with Spirit Inc. to ensure operational continuity during the handover.
DRB-HICOM said the acquisition would strengthen CTRM’s capabilities in aerostructure manufacturing, broaden its scale, and deepen ties with major global aircraft manufacturers such as Airbus and Boeing.
“Combining CTRM and Spirit MY will create greater scale in revenue, operations, and customer exposure,” the company said, adding that the enlarged group will benefit from synergies in production processes, supply chain leverage, and integrated support functions.
The move also safeguards existing contracts and positions CTRM to bid for larger, integrated work packages, while enhancing Malaysia’s role in the global aerospace supply chain.
Established in 2007 and based at the Malaysia International Aerospace Centre in Subang, Selangor, Spirit MY produces advanced aerostructures for Airbus and Boeing programmes, including the A220, A320/A321, A350, B737, and B787. It also provides engineering, supply chain, and shared services.
For the financial year ended Dec 31, 2024, Spirit MY posted a profit after tax of RM70.1 million on net assets of RM770.5 million. The company contributed 54.1% of CTRM’s consolidated revenue in 2024.
Spirit AeroSystems, listed on the New York Stock Exchange, is one of the world’s largest independent aerostructure manufacturers. In July 2024, it agreed to a merger with Boeing.
Completion of the deal is subject to the satisfaction of conditions in the share purchase agreement.
