Airline Services ready for take off after £40m deal
AIRLINE Services is set to embark on a major expansion drive, including acquisions and overseas growth after sealing a deal with private equity firm LDC, which values the business at around £40m.
The Manchester-based company, led by former corporate lawyer and Manchester City FC director Bryan Bodek, has been looking for a suitable private equity partner for some time.
The company has enjoyed rapid growth in the last three years, with turnover rising from £40.9m in 2010 to £48m in 2011 and is on track to hit nearly £60m this year.
Former British Airways and current Gulf Air executive Lloyd Cromwell Griffiths has become chairman as a result of the transaction, while another aviation sector veteran, Paul Carter has joined the board.
Mr Bodek, who revealed his plans to seek a private equity partner to TheBusinessDesk.com in July, said today: “We expect the deal to create more jobs – we’ve taken on 200 people in the last three years.
“This will also fuel our export growth and give us the resources to make acquisitions if suitable opportunities arise.”
Owned by its management team Airline Services has two main operating hubs at Manchester Airport and at Gatwick. Around 70 people work at its head office in Sharston.
The business works with 165 airlines around the world. It provides of aircraft de-icing, ramp turnaround and cabin maintenance and retrofit services.
The group’s Workshop division incorporates the repair and overhaul of cabin interiors, aircraft seats, galley equipment, lighting, in-flight entertainment and other avionic systems from its facilities at Manchester and Stansted airports.
Its Ramp Operations division operates from 12 UK airports, including Manchester Airport, and is a leading U.K. provider of essential turnaround services including aircraft de-icing aimed at minimising aircraft time on ground.
Based at Gatwick and East Midlands airports, the group’s Rotable Components business provides a rotables parts and wheel and brake management and repair capability from a substantial stockholding base.
Jon Pickering, investment director at LDC in Manchester, said:“This investment represents LDC’s continuing commitment to support high quality North West-based businesses and their growth ambitions.
“Airline Services is an impressive company which boasts a unique service proposition. Having enjoyed significant growth in recent years across all its divisions, we intend to build further on this success and support its organic and acquisitive growth strategy going forward.”
Tremayne Ducker and Alexei Callender at Zeus Capital advised management and Newco.
Peter McLintock at Squire Sanders provided legal advice to LDC. Stuart Thwaites and Richard Harding at the Manchester office of Ernst & Young provided financial due diligence, working alongside Matt Carter from their Birmingham office.
Stephen Levy and James Fitzgibbon at Pinsent Masons provided legal advice to the vendors.
