Long-term funding deal to help aerospace venture fly

Amin Amiri

A Manchester aerospace business is to get a £31m injection after landing a new funding package.

Parent firm a2e Industries secured the loan facility for its fast-growing aerospace grouping, Aero Services.Global group.

The funding package was provided by Magnetar Capital.

In addition, Close Brothers Invoice Finance has provided finance facilities of £6m, bringing the total funding to £31m.

AS.G was founded in 2015 with the aim of developing a highly specialised and innovative aerospace group.

It started operations with the acquisition of Phoenix Ltd in December 2015 and, in just four years, has evolved into a group with seven operating businesses.

It offers capabilities and expertise across a wide range of safety-critical aerospace components.

The capital provided by Magnetar will support AS.G in pursuing a number of strategic acquisitions in the engineering and aerospace sectors.

Amin Amiri, founder and CEO of a2e Industries, said: “We are delighted that one of our key ambitions of creating a distinctive aerospace group is coming to fruition.

“AS.G now has aggregate annual sales and EBITDA of £44m and £6m respectively and is progressively expanding its reach across the entire Aerospace OEM supply chain.

“We are thankful to Magnetar for believing in this project and for their deep commercial and financial understanding.”

Luca Di Rico, head of European Private Capital at Magnetar, said, “a2e Industries has a clear strategic vision for growth and innovation within a very sophisticated industry. We are delighted to provide an alternative capital solution to support them in further achieving their goals.”

Simon Weston, who joined AS.G in April 2017 as group managing director and has helped the business grow consistently since, said: “The funding provided by Magnetar is a fitting accolade to the development of AS.G group.

“The management team have been working hard over the last three years to strategically enhance our customer base. We aim to attract the necessary talents and to invest in the latest technologies and techniques, to enable us to keep our competitive edges directed at achieving our goal of becoming a strategic supplier to the Aeropsace OEM’s.”

a2e Industries was advised by Duff & Phelps Limited, Gateley LLP and Shoosmiths LLP. Dow Schofield Watts Transaction Services LLP and Renaissance Strategic Advisors Limited were responsible for financial and commercial due diligence, respectively.

AS.G Industries consists of seven operating companies each acquired due to their specific niche and expertise, capabilities and customer support.