FOR IMMEDIATE RELEASE AT
WEDNESDAY, MAY 29, 1996 (202) 616-2771
TDD (202) 514-1888
U.S. DEPARTMENT OF JUSTICE ALLOWS UNC INC. TO PURCHASE CFC
AVIATION SERVICES L.P.
Merger Approved Following UNC Divestiture of Jet Engine Heavy
Maintenance Business
WASHINGTON, D.C. -- UNC Inc., an aviation maintenance
services company based in Annapolis, Maryland, will be permitted
to go ahead with its proposed $150 million purchase of Phoenix-
based CFC Aviation Services L.P. after UNC divested one of its
jet engine heavy maintenance businesses to Sabreliner, the
Department of Justice announced today.
The Department's Antitrust Division was investigating the
deal as originally proposed to determine if it would lessen
competition in the $100 million market for heavy repair of Allied
Signal's TFE 731 turbofan engines, the premier business jet
engine being flown in the United States today.
The merger would have combined the only independent service
centers in the United States authorized by Allied Signal to
perform heavy maintenance on the TFE 731. Heavy maintenance on
these engines can cost between $60,000 and $250,000.
"This divestiture will allow Sabreliner to become an
effective competitor for heavy maintenance on TFE 731 engines,
and preserve competition for this important service," said Anne
K. Bingaman, Assistant Attorney General in charge of the
Antitrust Division.
UNC is an aviation services company that performs turbine
engine overhaul, repair and maintenance for business jets and
helicopters. In 1995, UNC had sales of $108 million from
overhaul services on all makes of engines.
CFC, doing business as Garrett Aviation Service provides
avionics, airframe and engine repair at six locations in the
United States. CFC's total sales in 1995 were approximately $330
million.
UNC sold its complete TFE 731 heavy maintenance business,
including its factory authorization from Allied Signal and
related assets, to Sabreliner of St. Louis, Missouri. Sabreliner
currently specializes in overhaul, repair, service and parts
support for various makes of aircraft engines, and previously
offered authorized mid-level repair service on Allied Signal
engines. Sabreliner had total sales of approximately $120
million in fiscal year 1995.
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