Birmingham manufacturer acquired in £106m private equity deal

Dunlop Aircraft Tyres

One of Birmingham’s most high profile manufacturers has been acquired in a new private equity deal worth more than £100m.

Liberty Hall Capital Partners, a private equity firm focused exclusively on investments in businesses serving the global aerospace and defense industry, has acquired Dunlop Aircraft Tyres in a deal which values the business at £106m ($135m).

DAT is one of the West Midlands’ leading exporters. Overseas sales account for more than 80% of the company’s revenue, with tyres made in Birmingham being shipped to commercial and military aircraft operators around the world.

The company has a distribution and retreading facility in China that supports the Asia Pacific region. The site has approval from CAAC and EASA as well as a number of countries across the region including Indonesia and Thailand.

A US distribution and retreading facility enables the company to better support aircraft operators throughout the Americas.

The company, based at Fort Parkway, is also a winner of the Queen’s Award for International Trade. It employs 570 people at its three operations.

The deal represents Liberty Hall’s first portfolio company focused on providing aftermarket products and services to the global aerospace and defense industry.

Rowan Taylor, Liberty Hall’s founding partner, said: “Our intention is to steward the legacy, reputation and brand name that Dunlop Aircraft Tyres has built over its 100-plus year lifetime to grow the company into an independent, global, diversified supplier of aircraft tire products of the highest value.

“With a globally recognised brand, proven history of customer service, exemplary technology and a well-balanced portfolio of platforms in the civil and military aircraft sectors, the business is ideally placed to continue to outperform the market.

“The company has also executed a successful business strategy based upon geographic expansion, product and technology range enhancement and modernisation. We intend to provide management with the financial, intellectual and human capital necessary to continue to meet the needs of Dunlop’s customers.”

DAT’s existing management team, led by Gordon Roper, CEO and managing director, will remain in their roles following the acquisition.

Mr Roper said: “Management’s day-to-day focus will be on continuing to execute our successful business strategy. Liberty Hall, with its deep experience, knowledge and relationships within the global aerospace industry, is ideally positioned to help us accelerate the outstanding growth record that we have demonstrated in recent years.”

Dunlop Aircraft Tyres represents Liberty Hall’s fourth platform acquisition and second acquisition in Birmingham.

In March 2016, it acquired DAT’s near-neighbour and fellow aerospace firm, Bromford Industries.

Liberty Hall was advised by Macquarie Capital (Europe), while financing for the acquisition was provided by Royal Bank of Scotland’s Corporate Transactions Team, Permira Credit Solutions Funds and Macquarie Corporate Holding (UK Branch). Legal advice to Liberty Hall was provided by Gibson Dunn & Crutcher.

The sellers and management were advised by Rothschild & Co.  Legal advice to the sellers was provided by CMS Cameron McKenna Nabarro Olswang and legal advice to management was provided by Macfarlanes.

 

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