What is the origin of this buyout?

For many years, Techspace Aero has developed its expertise in test benches. Seeing how successful this activity was, a Business Unit was created in 2000 in Techspace Aero: the Test Cell Engineering Division. Specialized at first in turbojet engine testing, the Business Unit extended its sphere of activity to include turbo-shaft engines thanks to an agreement with Turbomeca. This agreement turned Techspace Aero into Turbomeca’s designated supplier of all test benches for engines marketed by Turbomeca. Besides this contract, Techspace Aero became a center of excellence in the Snecma Group in terms of test benches: we are the unit responsible for setting up new testing resources at Snecma Moteurs and with regard to Snecma Moteurs customers. We also have contracts for the fitting out of test benches for the General Electric CF34 engine and for the tooling of test benches for the GP7000 of the Engine Alliance.
This was the situation when we were contacted by Pratt & Whitney with a view to sell Cenco, whose activities are not within P&W’s core business. We immediately took an interest in this internationally renowned company. Pratt & Whitney particularly wanted to sell Cenco to a recognized company, since Cenco installed test benches for Pratt & Whitney customers, and they were anxious to preserve their image. Besides, we are officially recognized by Pratt & Whitney when dealing with their customers, which allows us to have access to information that is essential to the manufacturing of test benches suited to P&W’s engines.

What kind of possibilities are opened up by this buyout?

The activities of the company will be grouped in a new Techspace Aero subsidiary named Cenco Inc, which will be located in the US and will work in close partnership with the Business Unit in Liège (Belgium). This purchase will strengthen the Techspace Aero test bench activity, which eventually will represent over 10% of the overall turnover of our company.
This is because the activities of the BU in Liège and those of Cenco fit very well together. Cenco specializes in benches for large engines: Trent from Rolls-Royce, PW 4000 from Pratt & Whitney, whereas Techspace Aero has developed its skills in benches for F100, CFM56 and helicopter engines. It will also allow us to be present throughout the world: Cenco is established in North America and in Asia, while we are very present in Europe.
Finally, we will develop synergies between the two entities in Liège and Minneapolis, in order to pool the Research and Development activities and the technologies, particularly our data acquisition system.