A Canadian subsidiary of U.S. defence giant Lockheed Martin Corp. says it plans to buy Aveos Fleet Performance's engine maintenance, repair and overhaul business in Montreal for an undisclosed price.
Terms of the agreement were not disclosed but Lockheed Martin said they are "not material" to the defence company.
Chief executive Marillyn Hewson says the acquisition is consistent with the company's strategy of acquiring capability to expand into "attractive adjacent market opportunities."
She says the company plans to begin operations for commercial and military customers later this year.
Lockheed says it will use the acquired assets to work on CF34 and CFM56 engines that power Embraer and Bombardier regional jets, along with Airbus 320 family of planes.
The company plans to hire an undisclosed number of former Aveos employees.
The new facility will be named the Kelly Aviation Center Montreal and be affiliated with an aviation centre based in San Antonio, Tex.
Lockheed Martin Canada has more than 700 employees at facilities in Ottawa, Montreal, Dartmouth and Calgary, as well as Department of National Defence sites across the country.
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