Sikorsky to acquire Keystone

has agreed to acquire

, a privately owned

company specialising in full-service engineering, completion and technical support for commercial helicopters, and air medical flight operations.

As part of the transaction, Sikorsky will also acquire the Keystone subsidiary, Composite Technology Incorporated (CTI), a company headquartered in Grand Prairie Texas, with substantial rotor blade and composite structures overhaul capabilities with locations in Canada, Brazil, UK, and Singapore.

The leadership of both companies has approved the transaction, which is expected to close in the fourth quarter of this year. The terms of the acquisition were not disclosed. Keystone will continue to operate under the Keystone brand name as a wholly owned subsidiary of Sikorsky.

Keystone and CTI employ approximately 650 workers with primary operations in West Chester and Coatesville, Pennsylvania and Grand Prairie, Texas. The company's Flight Services Division operates a fleet of air medical transport helicopters at hospital base sites throughout the eastern United States. Keystone and CTI's consolidated annual sales for 2004 were approximately $100 million.

The finalisation of the transaction is subject to the approval of the

government and other regulatory authorities, as well as certain other conditions.