LDC backs MBO of aviation firm
A BIRMINGHAM-based private equity provider has helped finance the management buy-out a company specialising in the interior design and fit-out of new aircraft.
LDC, part of Lloyds Banking Group, said the deal for AIM Aviation formed part of its continuing strategy of investment in leading mid-market businesses and built on the £120m invested in six other transactions so far this year.
The deal was also completed with the support of a number of Birmingham-based advisers including Andy Currie and Jeremy Harrison at Catalyst Corporate Finance; Richard Edwards and Guy Thomas at Deloittes, who provided financial due diligence and Sue Lewis and Louise Fleming at Eversheds, who were legal advisers to LDC. Banking facilities were provided by Paul Whitehouse and Andy Taylor at Lloyds Banking Group and Peter Talbot and David Jamieson at RBS.
LDC said the deal also formed part of its continuing strategy of investing in the specialist manufacturing sector, a sector in which its Midlands team has specialist knowledge due to the significance of the region’s traditional industry.
AIM, which started up in the 1920’s, has a diverse customer base and enjoys longstanding relationships with a wide range of airlines, airframe OEMs and military authorities.
AIM, based in Bournemouth, comprises three individual trading businesses – Jecco, Henshalls and Composites.
Jecco is a market leading provider of premium aircraft interiors for a number of the faster-growing airlines such as Emirates, Virgin Atlantic, Etihad and Qatar. Its products range from premium bar, left, lounge and cabin areas to mood lighting systems.
Henshalls produces galley systems and has, over recent years, established leading positions on the A320, A330 and B737 platforms alongside key customers such as China Southern, China Eastern, Shenzen and EasyJet.
Composites provide composite materials and products to a wide range of customers in aerospace and related industries including Jecco and Henshalls.
The management buy-out is being led by group chief executive Mark Edwards, alongside Peter Forbes, group commercial director and managing director of Jecco, Keith Robinson, managing director of Henshalls and Paul Seaford, managing director of Composites.
Chris Thomas, who has worked with LDC on a number of previous successful transactions, becomes chairman.
Commenting on the investment, Mr Edwards said: “The management team is delighted to be acquiring AIM at an exciting stage in the group’s development. It is well positioned for growth and the financial backing of LDC and strategic support it brings can only help realise these opportunities.”
For LDC, the deal was led by managing director Martin Draper, alongside investment directors Steve Aston, Andy Lyndon and Andy Grove.
Mr Aston said: “We are delighted to be investing in AIM. The business has benefitted from its relationship with growing airlines and being positioned on the wide-body platforms such as the A380, B787 and A350 where AIM’s premium interiors are particularly suited and go to the heart of an airlines branding. The strong OEM order book provides a robust base for further growth.”
Mr Draper added: “AIM is a high quality business where all three companies have strong positions within their respective markets.
“LDC has a history of working with progressive specialist manufacturing businesses and we are delighted to be making an investment in AIM.”
He said the business offered clear opportunities for growth and had a team of talented executives with the ambition and commitment to take the business to its next stage.
“This represents LDC Midlands fourth investment during 2010 and reflects our on-going desire to invest through the cycle,” he added.
