UNC Inc., the Annapolis-based aviation services company, said yesterday it has reached an agreement to buy Garrett Aviation Services, a privately held firm that specializes in the overhaul and repair of aircraft and aircraft engines.
The $150 million acquisition is the largest in UNC's history. It will boost the company's size by 62 percent, making it the world's largest independent aviation services company, with annual revenues of nearly $1 billion, according to Dan A. Colussy, UNC's chairman, president and chief executive officer.
The acquisition, which creates a combined work force of 6,900 people, is not expected to result in the loss of any significant number of jobs at either company, officials said. Mr. Colussy said combining the two companies will eliminate fewer than 10 jobs at Garrett Aviation and may add a couple of jobs at UNC's headquarters.
UNC makes parts for commercial jetliners, remanufactures jet engine and aircraft components, refurbishes helicopters, and pro
vides aircraft maintenance and pilot training. The company, with revenues of $530 million last year, operates in 78 locations worldwide and employs 5,900 people.
Garrett Aviation's headquarters are in Phoenix, Ariz. It formerly was part of AlliedSignal, but was sold to an investors' group formed by the company's senior management two years ago. Garrett had revenues of $330 million last year. It operates in six cities and has a work force of 1,000 people.
Explaining the synergies of the acquisition, Mr. Colussy said that Garrett Aviation over the years has built up a strong engine repair and overhaul business. "They do engine overhauls, but they are not in the business of repairing parts. That's where UNC is strong."
In the past, he said, Garrett Aviation would go to outside customers for about $50 million worth of parts repair annually. "None of that business went to UNC," he said. "Now we will be getting all of it."
In addition to overhauling engines, Garrett Aviation repairs equipment in planes, including such things as radios and flight directors. It operates one-stop repair centers where commuter planes and corporate jets can come for airframe maintenance, including the replacing of doors, windshields and windows. The company also installs entertainment systems in planes, including televisions, repairs seats, installs new galleys cockpits.
Garrett Aviation primarily services planes with AlliedSignal engines. UNC repairs engines made by other manufacturers, including General Electric, Pratt and Whitney and Rolls Royce.
Mr. Colussy said yesterday that there are almost no product or service overlaps between UNC and Garrett Aviation, and that will allow both to expand their customer bases.
Mr. Colussy said Garrett is a "very profitable" company, and he predicted that UNC's earnings would increase this year as a result of the acquisition. For 1994, the last full year for which UNC has reported operating results, it reported revenues of $525.8 billion and a loss of $67.9 million.
UNC's stock jumped 15.2 percent yesterday, closing at $6.625, up 87 1/2 cents.