CataCap acquires global aviation aftermarket specialist AerFin

24. SEPTEMBER – 2019

CataCap har, i partnerskab med ledelsen, købt det UK-baserede AerFin Holdings fra CarVal Investors. AerFin er en førende global specialist i levering af aftermarket løsninger til flybranchen. Selskabets team af specialister leverer skræddersyede services inden for salg og leasing af hele fly og flymotorer, samt salg af reservedele ad-hoc eller på kontraktbasis. AerFin omsatte i 2018 for DKK 760 mio. med EBITDA på DKK 140 mio. Med CataCap som ny hovedaktionær, er det hensigten sammen med stifter og CEO, Bob James, og den øvrige ledelse, at styrke platformen yderligere og gøre virksomheden klar til yderligere international ekspansion.

The acquisition of AerFin marks CataCap’s second platform investment in the aviation aftermarket sector. In addition, the investment in AerFin is the first CataCap platform investment outside Denmark. Long term CataCap investor Schroder Adveq joins as co-investor in the transaction.

AerFin has realised revenue growth of 38% per year from 2015 to 2018 by extending the useful life of aircraft parts, driving cost-effective solutions for airlines, combined with making a positive contribution to the environment through recycling of parts. The aviation aftermarket is generally attractive with strong underlying growth drivers, including a projected yearly increase in spend on used serviceable materials of 6-7% per year through 2029, driven primarily by an increased focus on costs and environmental impact in the airline sector.

”AerFin is an outstanding compay in a sector that has global reach. AerFin has received several awards for solid growth and has been in our sight for quite some time. We are truly impressed with the strength of the business model and the leadership team we are backing. Following our acquisition of TP Aerospace in 2017, we have developed a clear ambition of increasing our exposure in the sector. This is an industry we know well and we are convinced that Aerfin is an excellent platform and that CataCap is the right partner for AerFin to help drive continued growth”, says Peter Ryttergaard, Partner in CataCap.

AerFin founder and CEO Bob James, who will retain a significant equity interest in the business, supported by the existing leadership team, said: ”I am delighted to announce the partnership and investment from CataCap who I firmly believe will be the catalyst for continued sustainable growth and business development through their strategic alignment of interests bringing a true collaborative approach to our employees and our strategic partners”.

Plans for continued expansion

Bob James and the current leadership team will continue to lead the business following the transaction with the clear ambition of continuing the organic growth journey. As part of the transaction, the company has secured adequate financing to support continued growth and business development. The closing of the transaction is subject to customary closing conditions and is expected to take place in October 2019. CataCap was assisted by Baker & Mckenzie, Deloitte and Oliver Wyman, as its legal, financial and commercial advisor, respectively. The shareholders of AerFin were advised by EY Corporate Finance, A&L Goodbody and KMPG. Management was assisted by Osborne Clarke and Grant Thornton. For more information, please contact:

CataCap Peter Ryttergaard, Partner Tel.: +45 30 20 36 04 E-mail: pry@catacap.dk

CarVal Justin Bradburn Tel. +65-6911-3795 E-mail: justin.bradburn@carval.com

AerFin Bob James, CEO Tel.: +44 29 2010 9891 E-mail: bob.james@aerfin.com

EY Charles Berkeley Tel. +44 20 7760 9189 E-mail: cberkeley@uk.ey.com

About CataCap

CataCap invests in small and medium-sized companies which have a significant development potential and an innovative business model with a long-term raison d’être.
The concept is to act as a catalyst for sustainable business growth through a systematic and consistent approach for strengthening business development, operational processes and management competencies in an active collaboration with a number of strategic partners and the companies’ management and employees.
CataCap is an active and engaged owner. The purpose of the systematic hands-on approach to develop the fund’s companies is to increase the speed and durability of the companies’ business growth and thus create long-term value for all of the stakeholders and stable, higher returns for investors. WWW.CATACAP.DK

Om AerFin

AerFin er en førende specialist i service- og vedligeholdelsesløsninger inden for fly og flymotorerdele. Selskabet har en omfattende beholdning af brugte renoverede reservedele af høj kvalitet. Disse benyttes til at servicere kunder over hele verden og medvirker til reduktion af vedligeholdelsesomkostningerne. Selskabet har særligt fokus på Airbus A320 serien og Boeing 737 serien, samt regionale fly. AerFin tilbyder en bred vifte af services med kontraktlige supportløsninger for flyselskaber, foruden leasing af flymotorer og APU (Auxiliary Power Units), og nyskabende reservedelsprogrammer for vedligeholdesindustrien. AerFin tilbyder også lettere motorrenovering på egne certificerede faciliteter. WWW.AERFIN.COM

Om CarVal Investors

CarVal Investors er en globalt førende alternativ investment manager, som fokuserer på det alternative finansieringsmarked. Siden 1978 har CarVal’s team ageret i kreditmarkedet og foretaget opportunistiske investeringer med samlet 5360 transaktioner med en samlet værdi på USD 116 mia. i 80 lande. CarVal Investors har i dag USD 10 mia. under forvaltning i form af låneporteføljer, struktureret kredit, og fysiske aktiver. WWW.CARVALINVESTORS.COM