Singapore Technologies Engineering’s (ST Engineering) US subsidiary Vision Technologies Aerospace Incorporated (VT Aerospace) has signed a conditional share purchase agreement to buy General Electric’s nacelle manufacturing unit for $630m.

The cash-free and debt-free deal is subject to the completion of adjustments for underfunded pension obligations, other debt-like items, transaction expenses, net working capital and other contingent adjustments.

The deal must receive approval and other clearance from the Committee on Foreign Investment in the US, as well receive anti-trust approvals in the US, France and Brazil.

It is scheduled to close by the end of the first quarter of next year.

GE’s nacelle manufacturing unit, known as MRA Systems (MRAS), is involved in the production of engine nacelle systems for both narrowbody and widebody planes.

“We are excited by the prospects of our investment in MRAS, which is a high-value and complementary business that will enhance our scale and global reach.”

MRAS primarily has two business lines, including design, development, production and sale of nacelles, thrust reversers and aerostructures, as well as spare parts sale activities.

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Headquartered in Baltimore, Maryland, US, the company currently employs around 800 people.

ST Engineering president and CEO Vincent Chong said: “ST Engineering keeps a constant lookout to acquire companies in our core business areas or adjacencies that will contribute profitable revenue streams and sharpen our competitive edge.

“We are excited by the prospects of our investment in MRAS, which is a high-value and complementary business that will enhance our scale, global reach and capture synergies for the Group.”

With the deal, ST Engineering also aims to boost its aerospace capabilities and combine MRAS’s expertise in advanced composite structures with its own composite manufacturing capabilities.

MRAS next-generation nacelle programmes comprise Airbus’ A320neo family of aircraft powered by CFM International’s LEAP-1A engine.

The company’s other programmes include COMAC’s C919, and Bombardier’s Global 7000/8000 series of next-generation private/business jet.