Aero Technics is a leading civil aircraft maintenance business focusing on cabin services. The UK civil aircraft maintenance market is estimated to be worth £1.7 billion annually with growth underpinned by the continued expansion of the global aircraft fleet and the rise of low-cost carriers, which is increasing demand for outsourced maintenance services. The industry is fragmented and tightly regulated, with new approvals difficult to obtain. Airlines are keen to rationalise their buying around larger suppliers to simplify the management of their supply chains and to save costs.
Steve Cloran, founder and CEO of Aero Technics, wanted to accelerate the company’s growth strategy by focusing investment in its product and service offerings in both existing and new geographies through both organic growth and by acquisitions.
What difference did we make?
Working with the company we refined the strategic plan to include industry segment assessment, target identification and finding the right equity partners to approach with the opportunity. This preparatory work included approaching a number of potential acquisition targets to gauge vendor appetite for an exit. We also identified the likely acquirers or future funders of an enlarged group.
Graphite Capital stood out as the ideal investment partner from our early conversations with them and, working together, we progressed conversations with a short list of acquisition targets resulting in the joint delivery of the development funding and the Airbase Interiors acquisition.
Effectively completing two transactions at the same always brings a high degree of complexity to a process. Two commercial deals to agree, two sets of diligence streams and the inevitable legal agreement negotiations all compound the complexity of the overall transaction. We worked closely with both Graphite and Aero Technics to ensure that all of the various work streams were efficiently managed so as to minimise business disruption whilst ensuring milestones were met.
The market is highly fragmented and we will continue to advise Aero Technics on identifying and completing future acquisitions.
Managing Director, Aero Technics