UPDATE 1-Lockheed buys some assets from Canada's Aveos Fleet

Mon Jan 7, 2013 9:05pm EST
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* Lockheed aims to hire 100 workers by end of year

* CEO says deal moves Lockheed into attractive, adjacent market

* Union welcomes acquisition, rehiring of displaced workers

By Andrea Shalal-Esa

WASHINGTON, Jan 7 (Reuters) - Lockheed Martin Corp, the biggest U.S. weapons maker, said on Monday that it was buying some engine maintenance, repair and overhaul assets of Canada's insolvent Aveos Fleet Performance Inc.

The acquisition was the first big news from Lockheed since Marillyn Hewson succeeded Robert Stevens as the company's chief executive on Jan. 1. Hewson said the deal would expand Lockheed's corporate presence in Canada and allowed the company to move into an "attractive adjacent market."

Lockheed did not disclose the terms of the agreement with the former aircraft maintenance firm owned by Air Canada , but said they were not material to Lockheed.

Lockheed and other U.S. arms manufacturers are looking for ways to maintain revenues by branching out into commercial businesses and other areas as they gird for cuts in U.S. military spending after a decade of sharp growth.

Hewson said Lockheed expected to start engine maintenance, repair and overhaul (MRO) operations at the former Aveos facility in Montreal later this year.   Continued...