UNC Inc. buys Lear Siegler, expanding its aviation services

October 28, 1993|By Ted Shelsby | Ted Shelsby,Staff Writer

UNC Inc. boosted its thrust in the aviation service industry yesterday with a $17 million cash purchase of Oklahoma City-based Lear Siegler Management Services Inc.

The addition of Lear Siegler, which provides contract services for the operation, maintenance and repair of aircraft, would boost UNC's revenues by about 33 percent and double its workers to about 6,000.

Dan A. Colussy, chairman, president and chief executive of Annapolis-based UNC, called the acquisition "an excellent addition" to the company's aviation services business.

The acquisition of Lear Siegler was UNC's latest step in a series of recent moves to restructure the company from a mini-conglomerate, also involved in uranium mining, contract drilling, shipbuilding and mortgage servicing, into an operation focused on the military and commercial aviation industry.

UNC earned $11.4 million last year on revenues of $365.2 million. Its stock has risen 45 percent since the start of the year to close yesterday, unchanged, at $8 a share.

While UNC declined to reveal Lear Siegler's earnings, Craig Coy, a vice president, said "it has excellent profitability." Lear Siegler has annual revenues of about $120 million. It was previously owned by Forstmann Little & Co., a New-York based private investment company.

Lear Siegler's business is divided into three main groups:

* Contract field teams, which have contracts with the U.S. Air Force to supply aircraft maintenance and related services on short notice.

* A federal program, which includes fixed contracts to perform maintenance work on trainer aircraft at Shepard Air Force Base in Wichita Falls, Texas.

* International programs, including technical and repair support to the Royal Saudi Air Force.

John Moellering, president of Lear Siegler, is expected to move to Annapolis and head the combined contract services organization.

But UNC was unable to say yesterday how many other management officials would be relocated as the company consolidates the two corporate operations.

UNC is also engaged in the manufacturing and remanufacturing of jet engines and aircraft components, the overhaul of aircraft accessories and engines, aircraft maintenance and pilot training.

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