BBA Aviation to sell aircraft parts manufacturer Ontic to CVC Capital
Aviation industry news : BBA Aviation has signed an agreement to sell aircraft parts manufacturer Ontic to private equity firm CVC Capital Partners for an enterprise value of $1.37 billion.
Ontic, which was acquired by the British aviation company in February 2006 for $67 million, is a provider of a high-quality, original equipment manufacturer (OEM) licensed parts for legacy aerospace platforms.
Currently, the aircraft parts manufacturer has a portfolio of over 165 licenses for over 7,000 parts and supports more than 39,000 legacy aircraft.
Believed to be an essential source of future shareholder value creation, the sale of its aircraft parts and services business will help BBA Aviation focus and invest in its Signature business, a global fixed-base operator (FBO operator) and service provider for the business and general aviation (B&GA) market.
Mark Johnstone – CEO of BBA Aviation, commenting on the sale of the aircraft parts manufacturer, said: “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.
“Disposal proceeds would provide an opportunity to further enhance our proposed return of capital.”
Expected to be completed in Q4 2019, the cash-free and debt-free transaction is subject, inter alia to BBA Aviation shareholders approval and regulatory consents as per aviation industry news.
CVC Capital Partners senior managing director James Mahoney, commenting on the acquisition of the aircraft parts manufacturer, said: “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.”
For more aviation industry news like CVC Capital acquisition of Ontic and updates on BBA Aviation, keep following Business News Today.
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