EADS in £399 million deal to buy Vector Aerospace

European aviation and defence giant EADS has agreed to pay C$625 million (£399 million) for helicopter repair and maintenance firm Vector Aerospace, which has 2500 staff across the UK and Canada.

Vector, which boasts a raft of major customers including Boeing, Sikorsky, Rolls-Royce, and Pratt & Whitney, repairs engines and airframes for commercial and military helicopters.

The C$545 million-turnover company will be merged into the existing support business of EADS' helicopter arm Eurocopter, boosting its engine maintenance capacity as well as its presence in the UK and North America. Vector has UK bases in Croydon, Gosport and Farnborough.

EADS, which also owns manufacturer Airbus, plans to use Eurocopter's footprint in 25 countries to boost Vector's sales in Asian and Latin American markets.

EADS chief executive Louis Gallois said the deal was an "excellent investment opportunity for Eurocopter, as Vector has proven resilient and profitable growth".