The Israeli company has won an estimated $40 million contract to renovate and maintain auxiliary power units (APUs) for the Boeing and Airbus fleets of a US airline.
TAT Technologies Ltd. (Nasdaq:TATT; TASE:TATTF), controlled by FIMI Opportunity Funds, has won an estimated $40 million contract to renovate and maintain auxiliary power units (APUs) for the Boeing and Airbus fleets of a US airline. The contract is through TAT subsidiary Piedmont Aviation Component Services, TAT Technologies notified the Tel Aviv Stock Exchange (TASE) today.
The maintenance work on the APUs will be carried out at Piedmont Aviation's facility in North Carolina, starting in the fourth quarter of 2017. The contract is for five years.
TAT Technologies' share responded to the news with a 6% jump, putting the company's market cap up to NIS 355 million. The share has climbed more than 40% over the past year.
"Up until now, we have supported renovation some of the heat exchangers and landing gear of this fleet, and we will now also be responsible for maintaining the APUs," said TAT Technologies president and CEO Igal Zamir.
TAT Technologies, which supplies civil and military aviation products and services, was formerly regarded as one of FIMI's less successful investments. Over the past year, however, the trend has changed, and the share is on a positive trend, after remaining unchanged for the three years after FIMI acquired the company.
FIMI acquired 6% more of TAT Technologies' share capital nearly a year ago from US investment fund Leap Tide Capital Management, thereby increasing its stake in the company to 59.5%. FIMI acquired control of TAT Technologies in 2013 for NIS 125 million, reflecting a NIS 233 million value of the company.