Sikorsky Aircraft will buy privately held Derco Holdings Ltd. in a deal that expands its military aftermarket business by another $200 million a year.

Both companies are exhibiting here at FIDAE 2002, Sikorsky in Hall G, Booth F1, and Derco in Hall C, Booth G3.

Derco, based in Milwaukee, Wis., has many customers in South America, where it provides military aircraft logistics services, parts repair and aftermarket program management. Among its specialties are support for C-130s, F-5 and F-16 fighters. The company employs about 400 people.

Derco will become part of Sikorsky's Worldwide Customer Services business. Sikorsky's aftermarket and support business was already on track to surpass $1 billion for the first time this year as the world's military outsources an increasing proportion of its overhaul and maintenance, Sikorsky president Dean Borgman earlier told Show News.