Tag Archives: Aerospace

The Carlyle Group Closes Forgital Acquisition

Carlyle

Milan/Vicenza – Global investment firm The Carlyle Group (NASDAQ: CG) announced that it has completed the acquisition of a 100% controlling stake in Forgital, an Italian based manufacturing company producing large forged and machined components for use in the aerospace and industrial sectors, from members of the founding Spezzapria family and minority shareholder Fondo Italiano d’Investimento, managed by Neuberger Berman.

The purchase agreement, which values Forgital at approximately 1 billion Euros, was first announced on 29th May 2019. Equity for the transaction will come from Carlyle Europe Partners V (CEP V), a European-focused upper-mid market buyout fund and Carlyle Partners VII (CP VII), a US-focused buyout fund.

Established in 1873 with headquarters in Vicenza, Italy, Forgital is a specialist manufacturer of machine-finished forged and laminated rolled rings, made from several different materials, including steel, aluminium, titanium and nickel-based alloys used in several applications across many industries, including aerospace, oil & gas, construction, mining and power generation. Forgital employs over 1,100 people across 9 facilities in Italy, France and United States and through its dedicated global salesforce.

Carlyle will drive the Company’s further international expansion and strengthen its presence in the aerospace sector with Luca Zacchetti, appointed as Group CEO, effective from today. Luca Zacchetti, 58 years old, was CEO at Rhiag Group, the pan-European leader in distribution of aftermarket and spare parts, for over seven years and previously worked for almost five years at AVIO GROUP, a worldwide leader manufacturer of aero-engine components, with the role of Managing Director becoming CEO in 2007. His career includes also positions of Chairman and CEO of Tecnoforge Group and Operating Partner at Alpha Private Equity.

Filippo Penatti, Managing Director, Carlyle Europe Partners advisory team, commented: “We are excited with the appointment of Luca as CEO. We worked well and successfully together in two prior Carlyle investments, including AVIO. His experience in the aerospace industry together with his passion for Forgital’s business will contribute to fueling the Group’s platform development.”

Derek Whang, Principal on Carlyle’s Aerospace, Defense and Government Services team, said: “We look forward to partnering with Luca and all Forgital employees as we embark on this next chapter. The Company has a tremendous heritage and we are committed to upholding Forgital’s exceptional track record and delivering its mission critical parts to all customers.”

Luca Zacchetti, Forgital’s new CEO, added: “I am delighted to join Forgital, a Group with an outstanding reputation for advanced technology, high quality products and world-class customer service. I look forward to contributing to its further international expansion alongside the company’s talented team.”

For more information:

The Carlyle Group:

Barabino & Partners
Marina Riva- Federico Steiner, Tel:+39 02.72.02.35.35
Email: m.riva@barabino.it; f.steiner@barabino.it

Roderick Macmillan
+44  (0)207 894 1630

Email: roderick.macmillan@carlyle.com
About Forgital

Founded in 1873 in Vicenza, Italy by the Spezzapria family, Forgital is the leading European vertically integrated forging company, with 9 facilities in Italy, France and the USA, c. 1,100 employees worldwide and a global network of sales agencies.

Forgital specializes in forging, laminating and machining of rolled rings, with advanced capabilities across a range of materials including: carbon steels, alloy steels, stainless steels, aluminium, nickel, cobalt, copper and titanium alloys.

For more information on Forgital, please visit https://www.forgital.com/

 

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $223 billion of assets under management as of June 30, 2019, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,775 people in 33 offices across six continents.

Web: www.carlyle.com

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Proposed sale of Ontic for $1,365 million to CVC Fund Vll

Transaction unanimously supported by the BBA board as being in the best interests of shareholders

BBA Aviation plc, a market-leading provider of global aviation support and aftermarket services, is pleased to announce that it has entered into an agreement for the sale of Ontic, a leading provider of high-quality, OEM-licensed parts for legacy aerospace platforms, to CVC Fund Vll, for an enterprise value of $1,365 million, subject, inter alia to shareholder approval and regulatory consents.

Transaction highlights

  • Sale of Ontic for an enterprise value of $1,365 million, on a cash-free, debt-free basis
  • Transaction multiple meaningfully above BBA’s trading multiple of 11.4x FY18 underlying EBITDA
  • Transaction unanimously supported by the BBA Board as being in the best interests of shareholders
  • Transaction will enable enhanced focus and investment in the company’s market-leading Signature business, which the board believes to be a significant source of future shareholder value creation
  • Transaction should allow for a capital return to shareholders expected to be between $750 million and $850 million, to help ensure that the net debt of the retained group remains near the lower end of the stated target range of net debt to underlying adjusted EBITDA of 2.5 to 3.0 times at 31 December 2019, on a covenant basis
  • Transaction is conditional upon approval by BBA’s shareholders and various other approvals (including the consent of certain group lenders or replacement of certain financial indebtedness, and consent to the release of applicable security by the group’s pension trustee)
  • Completion is expected in Q4 2019

Mark Johnstone, BBA Aviation CEO, commented: “We are delighted that we have reached an agreement to sell our Ontic business to CVC Fund Vll for $1,365 million, delivering compelling value for BBA shareholders. While maintaining a strong balance sheet, we also expect to return between $750 and $850 million to shareholders and will evaluate how best to structure this return after consultation with our shareholders.

“Ontic was acquired by BBA in February 2006 for $67 million and has grown successfully through the acquisition of licences, organic and inorganic growth, and a disciplined approach to investment. This success has been based on trusted partner relationships with key aviation original equipment manufacturers. It now supports more than 39,000 legacy aircraft, through its portfolio of over 165 licences for more than 7,000 parts and over 1,200 customers worldwide.

“I would like to take this opportunity to thank all of our Ontic employees for their contribution to BBA Aviation over the years, and wish them well in the next stage of their journey.

“The Ontic disposal will allow BBA to focus on its core Signature business, the leading global FBO operator and service provider for the B&GA market. BBA shareholders will continue to benefit from Signature’s ability to outperform the B&GA market through the cycle, as well as its ability to take advantage of its significant opportunities for future growth.

“We remain committed to delivering long-term sustainable value from Signature, a strongly free cash generative business, which after funding investment requirements, should underpin both progressive dividends and ongoing returns of capital to shareholders.

“The ERO disposal process is ongoing and we expect to update the market in due course. Disposal proceeds would provide an opportunity to further enhance our proposed return of capital.”

James Mahoney, Senior Managing Director, CVC Capital Partners commented: “Ontic is a growing, highly resilient business and a leading player in what we believe to be a very attractive market. We see multiple opportunities to develop the business further and look forward to working closely with Ontic’s excellent management team to take the company to the next level.”

 

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Winch invests in Spherea

Anderra Partners

SPHEREA continues its growth trajectory with a consortium comprising Andera Partners and Omnes

Paris and Toulouse, 15 May 2019 – A consortium, comprising Andera Partners, via its fund WINCH Capital 4, and Omnes, via its fund Omnes Croissance 4, is taking a majority shareholding in the group SPHEREA, alongside management and its existing financial shareholders (ACE Management via Aerofund III and IRDI-SORIDEC Gestion, via SCR fund IRDI).

Since its exit and its capitalistic independence from the Airbus group, SPHEREA, created in 1965, continues its growth trajectory with the ambition of becoming first European, and then world leader in technological test solutions that enable the availability and security of critical systems for civil or military clients.

SPHEREA offers modular technology solutions for the entire lifecycle of electronic systems. A recognized market integrator, which has developed a wide range of products dedicated to electronic tests, such as the ATEC Series automatic test benches used in maintaining most Airbus and Boeing aircraft, the group relies on the synergy of its professional expertise in the fields of electronics, microwave, optronics, and power electronics. Since its exit in 2014 from the Airbus group, SPHEREA has diversified into energy and rail sectors.

The Group’s development dynamic is supported by an excess of 600 loyal customers worldwide, major players in aerospace and defence (Airbus, Dassault, Honeywell, Lufthansa Technik, DGA, Nahema, Thales, Comac), energy (EDF, Schneider Electric, RTE), or railways (SNCF, Alstom).

SPHEREA generated around €130 million in turnover in 2018, half of which came from exports (50 countries), and employs over 600 staff in France, Germany, the UK., the US and in Asia.

The aim of this deal is to allow SPHEREA to take a new step in its development based in particular on the following strategic areas:

  • Broadening its technological offer: in particular, developing predictive maintenance solutions, anticipating diagnostics, decision support, portable soil testing, on-board maintenance, and simulation;
  • Strengthening its positioning in new markets (energy and rail), drawing on its previous expertise in aeronautics;
  • Accelerating its international development (particularly in Asia and the US) and intensifying its policy of strategic acquisitions in France and Europe.

Christian Dabasse, CEO and Chairman of SPHEREA: “Our raison d’être is to ensure the reliability and security of our customers’ critical systems, we intervene where human life is at stake. Research and innovation are essential axes in a changing world in paradigm shift. Our new financial partners will enable us to expand our offering through increased R&D that responds to these challenges, as well as an ambitious external growth policy, both in France and abroad, on related trades or on new technologies in line with our mission. I especially thank Thierry Letailleur who, in 2014, as CEO of ACE Management and CEO of IRDI, was kind enough to support me in the creation of SPHEREA, and today allows us to enter a new phase of development.”

Antoine Le Bourgeois and Pierre-Yves Poirier, Partners at Andera Partners: “Management convinced us of the solidity of the Group’s historic businesses and the potential for new technological developments in the years to come. In addition, SPHEREA Group is fully committed to the investment strategy of our WINCH Capital 4 fund, which aims to support the change in scale of leading players in their market.”

Stéphane Roussilhe, Partner at Omnes: “We are delighted to support the management team in developing SPHEREA’s core business but also by helping external growth in France and internationally. This investment thesis perfectly reflects the strategy of our Omnes Croissance 4 fund.”

Thierry Letailleur, CEO, and Delphine Dinard, Partner, at ACE Management: “We are delighted to participate in this deal led by Andera and Omnes which allows us to continue supporting the group SPHEREA, which began 5 years ago. We are very proud of the journey made by Christian Dabasse and all his teams. This transaction also illustrates the ability of ACE Management to support strategic industrial companies across all phases of their development, such as the reinvestments recently made within the groups Duqueine, Nexteam, Rafaut and Socomore.”

Marc Bres-Pintat, Investment Director at IRDI-SORIDEC Gestion: “After backing Christian Dabasse and his teams during the successful spin-off from the Airbus group, IRDI-SORIDEC Gestion wanted to join this new capital-intensive operation aimed at providing SPHEREA with the means to pursue its growth strategy.”

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The Carlyle Group to Make Strategic Investment in Aerospace Company NORDAM

Carlyle

Investment will accelerate growth and support strategic plan

New York, NY and Tulsa, OK – Global investment firm The Carlyle Group (NASDAQ: CG) and family-owned aerospace company NORDAM today announced that The Carlyle Group has agreed to make an equity investment in The NORDAM Group, Inc., an aerospace manufacturing and repair company. Carlyle’s equity, along with new debt financing, will fund NORDAM’s exit from Chapter 11, de-lever the business and position the company for continued growth. The Siegfried family will retain its 50-year ownership and oversight of the business, and continue to lead the company forward. Carlyle’s equity will come from Carlyle Strategic Partners IV L.P.

Founded in 1969 by the Siegfried family’s late patriarch, aerospace-industry leader Ray Siegfried II, NORDAM is an aerospace manufacturer and provider of critical maintenance, repair and overhaul services (MRO) to the business, commercial and military aviation end-markets. With highly differentiated composites capabilities, NORDAM is committed to the superior performance and quality of its products as well as its customer-centric approach to MRO services. The company provides services to a global customer base through its nine strategically-located operations and customer support facilities on three continents.

“This is an important milestone for NORDAM as we exit Chapter 11 and embark on our next chapter of growth,” said Meredith Siegfried Madden, Chief Executive Officer of NORDAM. “We are thrilled to partner with Carlyle and look forward to working together to continue providing world-class products and services to our valued customers and enhancing flight safety globally. With Carlyle’s deep industry, operational and financial expertise, we believe we will be well positioned to execute on our strategic plan, expand our business and take advantage of the many growth opportunities that lie ahead.”

Shary Moalemzadeh, Managing Director and Co-Head of Carlyle Strategic Partners, said, “We are excited to partner with NORDAM’s outstanding management team and support the high-quality business they have built over the past 50 years. NORDAM has a stellar reputation for providing industry-leading products and services across global aviation end-markets. With this investment and the support of Carlyle’s global platform, we are confident that the company will have the right capital structure and resources to continue its legacy as a best-in-class aerospace manufacturer and provider of MRO services.”

Evan Middleton, Managing Director of Carlyle Strategic Partners, said, “NORDAM has established itself as a key partner to the U.S. military and business and commercial customers around the world. As a respected, differentiated provider of aerospace products and services, we see significant opportunities for continued growth, both organically and through acquisitions. We look forward to working closely with the NORDAM team to scale the business, expand into new end-markets and further develop the company’s composites capabilities – creating value for all stakeholders.”

The transaction is expected to close early in the first half of 2019, subject to Bankruptcy Court approval and satisfaction of customary closing conditions, including regulatory approval.

* * * * *

About NORDAM

Founded in 1969 on family values with multiple, strategically-located operations and customer support facilities around the world, Tulsa-based NORDAM is a leading independently owned aerospace company. The firm designs, certifies and manufactures integrated propulsion systems, nacelles and thrust reversers for business jets; builds composite aircraft structures, interior shells, custom cabinetry and radomes; and manufactures aircraft transparencies, such as cabin windows, wing-tip lens assemblies and flight deck windows. NORDAM also is a major third-party provider of maintenance, repair and overhaul services to the military, commercial airline and air freight markets. Learn more about NORDAM at NORDAM.com.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $216 billion of assets under management as of December 31, 2018, Carlyle’s purpose is to invest wisely and create value on behalf of our investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,650 people in 31 offices across six continents.

Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market-commentary

Media Contacts

The Carlyle Group:
Devin Broda
Sard Verbinnen & Co.
+1 (212) 687-8080
Carlyle-SVC@sardverb.com

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ARDIAN enters into exclusive negotiations to support REVIMA, a major player in the aerospace MRO sector, in its development alongside Argos Wityu

Ardian

Paris, January, 16, 2019 – Ardian, a world leading private investment house announces that it is in exclusive talks to acquire a majority stake in Revima, a leading MRO (Maintenance, Repair & Overhaul) solutions provider for aircraft equipment, from private equity firm, Argos Wityu. Following the transaction, Olivier Legrand, President of the Group, and Argos Wityu will reinvest alongside Ardian. This transaction is subject to approval from the antitrust authorities as well as the opinion of the works council.

Founded in 1952, Revima is an independent company which has become a leader in the maintenance, repair and overhaul of commercial transport aircraft equipment. The group is well-known for its expertise in the maintenance of auxiliary power units (APU) and landing gears for regional, medium and long-haul aircraft. The company, which has c.750 employees, realized revenues of more than €280 million in 2018, showing double digit growth for several years.

Revima is active in a fast-growing market driven by the continued increase of aircrafts in service worldwide. The group is ideally positioned to continue this development following investment in its French site, the construction of a new industrial site in Thailand which will be operational in 2020, and the pursuit of a bolt-on acquisition strategy. In this regard, Revima is currently in exclusive negotiations for two acquisitions aimed at strengthening its skillsets in repairing engine parts and in the field of advanced predictive maintenance.

Yann Bak, Managing Director at Ardian Buyout, said: “We are very pleased to be associated with the teams at Revima, a fast-growing company positioned in a very promising niche market. We will use our experience and network to expand the group’s international presence and further accelerate its commercial development.”

Olivier Legrand, President and CEO of Revima added: “Our rapid development these last years and the existing and future opportunities for both internal and external growth make us particularly enthusiastic about Revima’s prospects. We are delighted with Ardian’s investment alongside Argos Wityu, as we share common values and entrepreneurial cultures. Our priority is for Revima to become a global player, expanding its skills and know-how into new areas, and be closer to its customers.”

Gilles Mougenot, partner at Argos Wityu concluded: “Revima perfectly illustrates a situation where we helped position the company into new areas of growth. The objective we set ourselves in 2015 was to simplify the shareholder structure while opening it up to employees, help build a supportive management team, and from 2017, invest significantly in the business, notably internationally.”

ABOUT REVIMA

Revima is a leading independent MRO (Maintenance, Repair & Overhaul) solutions provider, specialized in APUs, Engine Parts and Landing Gears, for civil and military aircraft through five dedicated services: Repair & Overhaul, Engine Parts Repair, Material Solutions, Fleet Management and Leasing.
With committed and passionate employees across locations in France, Asia, North America and the Middle East, Revima boasts over 60 years of MRO expertise. Revima supports aircraft operators, lessors, and repair stations worldwide, is an EASA & FAA Part 145 certified organization, and has approvals from numerous agencies.
www.revima-group.com

ABOUT ARDIAN

Ardian is a world-leading private investment house with assets of US$82bn managed or advised in Europe, the Americas and Asia. The company is majority-owned by its employees. It keeps entrepreneurship at its heart and focuses on delivering excellent investment performance to its global investor base.
Through its commitment to shared outcomes for all stakeholders, Ardian’s activities fuel individual, corporate and economic growth around the world.
Holding close its core values of excellence, loyalty and entrepreneurship, Ardian maintains a truly global network, with more than 550 employees working from fifteen offices across Europe (Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), the Americas (New York, San Francisco and Santiago) and Asia (Beijing, Singapore, Tokyo and Seoul). It manages funds on behalf of around 750 clients through five pillars of investment expertise: Fund of Funds, Direct Funds, Infrastructure, Real Estate and Private Debt.
www.ardian.com

ABOUT ARGOS WITYU

Argos Wityu is an independent European private equity group supporting management buyouts of medium sized companies and has offices in Brussels, Frankfurt, Geneva, Luxembourg, Milan and Paris.
Argos Wityu funds take majority stakes between €10m and €100m in companies with revenues from €20m to €600m.
Our investment philosophy aims at creating value through business transformation and growth, instead of financial leverage, and bringing solutions to complex situations: MBI, spin-offs, strategic repositioning, shareholding conflicts… We work in close relationship with management teams, with a strong sense of transparency, trust, entrepreneurship and social responsibility.
Argos Wityu is a member of Invest Europe as well as national associations in France (France Invest), Italy (AIFI), Switzerland (SECA) and BVA (Belgium). Argos Wityu SAS is regulated by the AMF and is AIFMD compliant.
www.argos.wityu.com

LIST OF PARTICIPANTS

Ardian: Yann Bak, Alexandra Goltsova, Benjamin Witcher, Maxime Debost
M&A advisors: Wil Consulting (Jacques Ittah), Alantra (Franck Portais)
Legal and tax advisors: Weil, Gotshal & Manges ((David Aknin, Guillaume Bonnard and Come Wirz (corporate), Edouard de Lamy (fiscal), James Clarke (financing))
Commercial and strategic DD: Archery (Marc Durance, Thibault Espinosa), Oliver Wyman (David Stuart)
Financial DD: KPMG (Florent Steck, Stephane Kuster)

Argos Wityu: Gilles Mougenot, Thomas Ribéreau, Pierre Dumas
M&A: Canaccord Genuity (Olivier Dardel, Lucas Vuillemin, Mohamed Sagou)
Legal advisors: Mayer Brown (Thomas Philippe, Clotilde Billat) & Xavier Jaspar
Financial DD: Eight Advisory (Eric Demuyt, Jean-Sébastien Rabus, Victor Heilweck)
Commercial and strategic DD: Emerton (Sébastien Plessis, Jean-Edmond Coutris)
Tax advisors: Arsène Taxand (Brice Picard)

Management advisors:
Legal advisors: Jeausserand Audouard (Alexandre Dejardin, Elodie Cavazza, Faustine Paoluzzo)
Tax advisors: Jeausserand Audouard (Jérémie Jeausserand, Carole Furst, Charlotte Elkoun)

PRESS CONTACTS

REVIMA
C/O CMYK & CO
CYNTHIA JORDAN
cynthia@cmykandco.com
Tel: + 33 6 86 03 97 95
ARDIAN
Headland
TOM JAMES
tjames@headlandconsultancy.co.uk
Tel: +44 207 3675 240
ARGOS WITYU
toBnext
ANTOINETTE DARPY
adarpy@tobnext.com
Tel: +33 6 72 95 07 92

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The Carlyle Group to Acquire Leading Aircraft Engine MRO Provider StandardAero from Veritas Capital

Carlyle

WASHINGTON, DC – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced it has agreed to acquire StandardAero, a global provider of aftermarket engine maintenance, repair and overhaul (MRO) services for the aerospace and defense industries, from Veritas Capital. The transaction is subject to customary regulatory conditions and is expected to close by the end of the first quarter of 2019. Financial terms were not disclosed.

Russell Ford, CEO of StandardAero, said, “We are excited to partner with The Carlyle Group, and we thank Veritas Capital for its support and partnership. We look forward to working with Carlyle to further our aggressive growth trajectory as we continue providing world-class services to our customers as one of the world’s best and largest independent MRO service providers.”

Adam J. Palmer, Managing Director and Global Head of Aerospace, Defense and Government Services for The Carlyle Group, said, “Russell Ford and the StandardAero team have built a reputation for industry-leading capabilities and customer service. StandardAero is well positioned in an attractive market and we look forward to building on its strong foundation by helping it grow and meet evolving customer needs.”

Ramzi Musallam, CEO and Managing Partner of Veritas Capital, said, “We have enjoyed our successful partnership with StandardAero.  Russ and the StandardAero team have generated robust growth while consistently delivering outstanding services to customers through a relentless commitment to excellence. The StandardAero partnership underscores Veritas’ commitment to growing and adding lasting value to businesses in the aerospace and defense industries.  We wish the StandardAero management team all the best in their next phase of growth.”

Founded in 1911, StandardAero is one of the world’s largest independent MRO providers offering extensive services and custom solutions for commercial aviation, business aviation, military and industrial power customers. As an OEM-aligned strategic partner, StandardAero has developed a reputation for quality and performance that drives a sustainable competitive advantage and positions the company for future growth

Equity for the investment will come from Carlyle Partners VII, an $18.5 billion fund that focuses on buyout transactions in the United States.

Credit Suisse, RBC Capital Markets LLC and Macquarie Capital served as financial advisors to Carlyle, and Latham & Watkins LLP served as legal advisor. Credit Suisse, Goldman Sachs Merchant Banking Division, RBC Capital Markets LLC, Macquarie Capital, Barclays, Jefferies LLC, Nomura Securities and Goldman Sachs have agreed to provide debt financing for the transaction. Goldman Sachs & Co. served as lead financial advisor to StandardAero, and Morgan Stanley & Co. LLC also acted as a financial advisor on the transaction, and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor.

* * * * *

Contacts:

The Carlyle Group
Christa Zipf: +1 (212) 813-4578
christa.zipf@carlyle.com

Veritas Capital
Andrew Cole/David Millar/Julie Rudnick
Sard Verbinnen & Co
212.687.8080
VeritasCapital-SVC@sardverb.com

StandardAero
Kyle Hultquist:  +1 (480) 377-3192
kyle.hultquist@standardaero.com

* * * * *

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $212 billion of assets under management across 339 investment vehicles as of September 30, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,625 people in 31 offices across six continents.

Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market-commentary

About StandardAero

StandardAero is one of the world largest independent maintenance, repair and overhaul (MRO) providers. StandardAero offers extensive MRO services and custom solutions for business aviation, commercial aviation, military and industrial power customers. About 6,000 professional, administrative and technical employees work in 38 major facilities around the world, with additional strategically located regional service and support centers all across the globe. More information can be found on the company’s web site at www.standardaero.com.

About Veritas Capital

Veritas Capital is a leading private equity firm that invests in companies that provide critical products and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide, including those operating in the aerospace & defense, healthcare, technology, national security, communications, energy, government services and education industries. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means. For more information on Veritas Capital and its current and past investments, visit www.veritascapital.com.

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Mecadaq Group acquires TOP US Hard Metal Machining Company Hirschler Manufacturing INC.

Activa Capital

Mecadaq Group, a leading provider of high precision manufacturing for the aerospace industry, has announced the acquisition of Hirschler Manufacturing Inc., a US based company specialised in hard metal machining. The acquisition is another step in Mecadaq’s consolidation strategy , reinforcing the subcontracting chain in the aerospace supply.

Based near Seattle, Washington, USA, with €9m in turnover, Hirschler Manufacturing Inc. produces high-precision mechanical parts made from hard metals such as titanium, stainless steel, and inconel. The company has been a strategic supplier for more than 50 years to large clients in aerospace such as Spirit AeroSystems, Mitsubishi Heavy Industries, or Boeing, which has given the company the “supplier silver award“.

By joining the Mecadaq Group, Hirschler Manufacturing brings its customer portfolio, a recognised know-how in producing critical, complex parts, and quality of service. The company is committed to integrating Mecadaq’s production activities located in California.

This is the third external growth operation in less than 24 months for the Mecadaq Group, bringing its consolidated revenue to nearly €60m and staff to 300 employees.“It is quite an accomplishment for our company with the opportunity to accelerate our growth in North America and also to work directly with “The Boeing Company” as a Tier 1 supplier of detail parts,” said Julien Dubecq, President of Mecadaq Group. “This marks also a major step for Mecadaq, celebrating 10 years anniversary since the first US branch opening.”

“This transaction will allow our Group to reach in just two and a half years the level of turnover we had expected in fiveyears,” added Benjamin Moreau, Partner of Activa Capital. “ In addition to this lead over our original business plan, this external growth transaction reinforces Mecadaq’s leadership position by giving us the potential for new organic growth outside of France.”

 

Deal Participants

Buyers

Mecadaq Group: Julien Dubecq

Activa Capital: Benjamin Moreau, Christophe Parier, David Quatrepoint

Fiscal and Financial Due Diligence: PWC (Andrew Miller, Lisa Jackson)

Legal Due Diligence: Drinker, Biddle & Reath (Luc Attlan, Rémy Nshimiyimana)

Environmental Due Diligence:  ERM (Gary Walters)

Corporate Lawyers USA: Drinker, Biddle & Reath (Luc Attlan,

Rémy Nshimiyimana)

Corporate Lawyers France: Hoche (Grine Lahreche, Christophe Bornes)

Financial Advice: DC Advisory (Alexis Baron)

Strategic Advice: Aero Invest Consulting (Alinh Hoang)

Financing Bank: Société Générale (Marie-Laure de la Grandière)

 

Sellers

Hirschler Manufacturing: Gerald Hirschler

Financial Advisors: First Hill Partners (Michael Black)

Lawyers: Stokes Law (William Neal)

 

About Mecadaq Group

Mecadaq is an industrial group specialised in the manufacturing and assembling of high-precision mechanical parts for the world’s leading aerospace companies. With turnover of nearly €60m, Mecadaq has 300 employees in 7 sites: 4 sites in France (Tarnos, Pessac, Marignier and Chanteloup-les -Vignes, 2 sites in the US(California and Washington), 1 site in Tunisia(Tunis).

Learn more about Mecadaq at mecadaq.com or on Twitter @MecadaqGroup.

About Activa Capital

Activa Capital is a leading French mid-market private equity firm. Activa Capital manages over €500m of private equity funds on behalf of a wide range of institutional investors. Activa Capital partners with ambitious mid-sized French companies, valued at €20m to €200m, seeking to accelerate their growth and their international footprint.

Learn more about Activa Capital at activacapital.com or on Twitter@activacapital.

Activa Capital Media Contacts

Steele & Holt

Media Contacts

Benjamin Moreau

–

Partner

Daphné Claude

+33 1 43 12 50 12

+33 6 66 58 81 92

benjamin.moreau@activacapital.com

daphne@steeleandholt.com

Christelle Piatto

–

Communications Manager

Claire Guermond

+33 1 43 12 50 12

+33 6 31 92 22 82

christelle.piatto@activacapital.com

claire@steeleandholt.com

 

 

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Bridgepoint sells Leeds Bradford Airport

Bridgepoint

AMP Capital, on behalf of investors in its global infrastructure equity platform, has agreed to acquire 100 per cent of Leeds Bradford Airport from Bridgepoint Advisers Limited. Leeds Bradford Airport is an international airport serving the cities of Leeds, Bradford and the broader Yorkshire area, with four million annual passengers.

Leeds Bradford Airport is a compelling investment for AMP Capital due to its excellent location and strong growth prospects as well as AMP Capital’s expertise and successful track-record of investing in airports globally within its infrastructure portfolio for more than 20 years.

A mix of low-cost, charter and major international airlines operate at the airport, which benefits from a catchment area containing 5.3 million people, 2.9 million of whom live less than one hour from the airport.   Leeds and Bradford are the third and seventh largest cities in the UK, respectively, and the Leeds City Region is home to the UK’s largest financial and business services centre outside London.  The airport primarily offers international short-haul flights to customers as well as an established network of domestic destinations.

Simon Ellis, Head of Origination, Europe at AMP Capital, said: “With its strong underlying fundamentals including freehold ownership with well-invested infrastructure, a diversified airline mix and its catchment area in an economic hub of the North of England, Leeds Bradford Airport is a highly attractive investment and a great fit for AMP Capital’s global infrastructure platform, which includes the Global Infrastructure Fund.

“We believe there is a clear opportunity for performance enhancement through tailoring and improving the customer experience and working collaboratively with our key partners including airlines, government and local businesses.  In addition, the airport serves the Yorkshire and the Humber region, one of the fastest-growing regions in the UK with a population growth of 6 per cent since 2001 and there is also potential for further route development.

“AMP Capital’s heritage in transportation infrastructure investment and our experience of owning airports means we are well placed to develop the exciting opportunities presented by this investment.”

Michael Davy, Partner at Bridgepoint, said: “Over the past five years of Bridgepoint ownership, passenger numbers have grown by almost 40 per cent to over four million, c. £30 million has been invested in capex projects including a terminal upgrade, employee numbers have grown from 200 to around 460, and EBITDA has grown by over 25 per cent per annum.”

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CDPQ and Ardian enter into exclusive negotiations to acquire a significant equity interest in Alvest

Ardian

Paris – September 6th 2017 – Caisse de dépôt et placement du Québec, a leading institutional Canadian investor, and Ardian, the independent private investment company, have entered into exclusive negotiations with Sagard and Alvest’s Management team to acquire a significant stake in Alvest, the global leader in the production and distribution of airport Ground Support Equipment.

Sagard as well as the Management team led by Jean-Marie Fulconis, the CEO of the group, are to re-invest a significant amount in the company.

Alvest is a company dedicated to the design, manufacturing and distribution of technical products for the aviation industry. This includes aviation ground support equipment, spare parts and services, and technical adhesives and markings for the aerospace and industrial markets.

Alvest has more than 1,800 employees, a global proprietary sales and after-sales network, and operates 10 factories in the United States, Canada, France and China which together serve customers in over 130 countries.

Jean-Marie Fulconis, CEO of Alvest said: “Our team is proud and very pleased that long term investors of the calibre of CDPQ and Ardian are considering to partner with us, and that Sagard will continue to support us in our development. This vote of confidence continues to support our development ambitions, which remain focused around the quality of our products and services as well as the satisfaction of our customers.”

Stéphane Etroy, Executive Vice-President and Head of Private Equity, CDPQ, said: “Alvest’s management has been very successful in developing the company into a global leader in its sector. We are delighted with the idea of joining forces with Jean-Marie Fulconis and his team to support the company as it continues to expand its products and client base to new markets.”

Dominique Gaillard, Member of the Executive Committee of Ardian added: “We have known Alvest and its Management team for many years, having been shareholders from 2006 to 2013. We are very excited about the idea of supporting Alvest with our Ardian Co-Investment team in this new phase of its development and thank Jean-Marie Fulconis and his team for their trust.”

Frédéric Stolar, Founding Partner at Sagard said: “The journey of Alvest has been remarkable. The group has continued to consolidate its global leadership in the sector of airport ground support equipment by leveraging its innovative product portfolio and high quality aftermarket services. We have decided to keep a significant stake in Alvest since we are keen on continuing supporting this talented Management team which we feel close to.”

ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC

Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2017, it held $286.5 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.

www.cdpq.com

ABOUT ARDIAN

Ardian, founded in 1996 and led by Dominique Senequier, is a premium independent private investment company with assets of US$62 billion managed or advised in Europe, North America and Asia. The company keeps entrepreneurship at its heart and delivers investment performance to its global investors while fueling growth in economies across the world. Ardian’s investment process embodies three values: excellence, loyalty and entrepreneurship. Ardian’s employees form the largest shareholder group. Over 80 percent of employees have invested in the company, which is a testament to their trust in the Management and the corporate strategy.

Ardian maintains a truly global network, with more than 470 employees working through twelve offices in Beijing, Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, New York, Paris, San Francisco, Singapore and Zurich. The company offers its 580 investors a diversified choice of funds covering the full range of asset classes, including Ardian Funds of Funds (primary, early secondary and secondary), Ardian Private Debt, Ardian North America Direct Buyout, Direct Funds (Ardian Mid Cap Buyout, Ardian Expansion, Ardian Growth, Ardian Co-Investment), Ardian Infrastructure, Ardian Real Estate and customized mandate solutions with Ardian Mandates.

www.ardian.com

ABOUT SAGARD

Sagard is a French private equity fund supporting the development of mid-sized companies led by ambitious Management teams. Created in 2003 by the Desmarais family (Power Corporation of Canada), Sagard’s investor base comprises leading industrial families, and it has €2.5 billion in total assets under Management. Since 2004, Sagard and its Paris-based team of 10 professionals have invested in 30 industrial or services companies in France, Belgium and Switzerland.

The Sagard team involved on this transaction includes Frédéric Stolar, Rik Battey, Bérangère Barbe and Jérôme Triebel.

www.sagard.com

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ACTIVA CAPITAL portfolio company MECADAQ announces the acquisitions of ARMOA

Activa Capital

Activa Capital, an independent French private equity firm, and Mecadaq, a leading provider of high precision manufacturing for the aerospace industry, announce the acquisition of Armoa, a company specialised in high precision machining. The acquisition takes place 18 months after the creation by Activa Capital of a consolidation platform in aerospace subcontracting.

This is the second significant build-up for Mecadaq, which already generates revenues of €32 million in aeronautic subcontracting, primarily in the area of machining of aero structure parts for civil aircraft. Financed with bank debt and additional capital provided by Activa Capital and Mecadaq’s management, the acquisition will increase the group’s revenues to over €50 million. Based outside Paris, in Chanteloup -les-Vignes, with revenues of €18 million, Armoa is a family-owned business that for 40 years has specialised in providing high precision machining of small and medium size aluminium aero structure parts.

The company’s excellence in this area has made it the manufacturer of choice for top clients in the aeronautics sector, such as Stelia (Airbus), Daher, and Thalès. “We are delighted to bring on board the operational excellence of the Armoa team,” said Julien Dubecq, President of Mecadaq.

“In addition to being complementary on industrial grounds, this acquisition reinforces our organisation by Business Unit (milling, turning, gear and spline machining, assembly).

Since our clients are constantly searching for ways to optimise their supply chain, this new industrial organisation will allow us to develop our commercial relationships with large clients in the aeronautic sector.” “This operation, the second step in our consolidation program undertaken in early 2016, will bring Mecadaq to the symbolic level of €50 million in revenues.

With four specialised sites in France and two abroad, Mecadaq has the critical size that will make it possible to reinforce its position among large partners and lients in aeronautics,” added Benjamin Moreau, Partner, Activa Capital.

Mecadaq Group is currently holding discussions with several other Players in aeronautics subcontracting. The priority is to target further acquisitions both in France and overseas, which could be financed with new acquisition lines put in place this summer.

 

About Mecadaq Group

Mecadaq is specialisedin the production and assembly of precision-made mechanical parts for the world’s leading aeronautical manufacturers. Prior to this build-up, Mecadaq had turnover of nearly €30 million, employs 300 professionals spread across its four sites: three sites in France (Tarnos, Pessac and Marignier) and one site in the US (California). To find out more about the company, please visit the website at Mecadaq.com or on Twitter@MecadaqGroup.

About Activa Capital

Activa Capital is a leading French mid-market private equity firm. Activa Capital manages over €500m of assets on behalf of a wide range of institutional investors. Activa Capital partners with ambitious mid-sized French companies, valued at €30m to €200m, seeking to accelerate their growth and their international footprint. Learn more about Activa Capital at activacapital.comor on Twitter @activacapital

 

 

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