City based aircraft maintenance services provider Hong Kong Aircraft Engineering Co or HAECO had agreed to acquire Timco Aviation Services Inc for the price of USD388.8 million. The purpose of the acquisition is the expansion of the business.

With the two companies merging, there would be a wider range of services that can be offered to the customer, from airframe maintenance and cabin modification. This statement was included in documents filed with regulatory authorities today.

Timco is based out Greensboro, NC and provides aircraft technical services such as airframe, line and engine maintenance expertise. It also provides expertise in cabin modification and interior products manufacturing. In 2012, it hit a net income of USD6 million after a 2011 loss of USD12 million.

HAECO for its part is majority owned by Swire Pacific Ltd. After the announcement, share prices increased by 0.9% to HKD103.50 in early morning trading at the Hong Kong bourse.