Signature Aviation sells engine repairs business for $230m

Flight services company Signature Aviation has sold its engine repairs business for $230m, the firm announced on Wednesday.

Carlyle Group Inc. is planning to bow out of the bidding for Signature Aviation Plc, opting instead to acquire an engine repair unit of the private-jet base operator. US-based maintenance and repairs provider StandardAero will purchase the division. StandardAero Holding Corp., a U.S. aircraft maintenance company backed by Carlyle, agreed to buy Signature Aviation’s engine repair and overhaul business for $230 million, according to a statement Wednesday. 

Signature Aviation received separate proposals from Global Infrastructure Partners and a consortium with Blackstone Group and Cascade Investment, Bill Gates Private Equity firm. Blackstone and Cascade  already owns a 19% stake in London-based Signature. The two investor groups eventually teamed up, agreeing this month to buy Signature Aviation for $4.7 billion.

Signature Aviation had been looking to offload ERO since it was first put up for sale in 2018.

The deal comes at a time when the airline industry has been battered by the coronavirus pandemic.

Mark Johnstone, Signature Aviation CEO, said: “We are pleased that we have reached agreement to sell our ERO business to StandardAero, where we believe the business will continue to flourish.

“We are committed to delivering long-term sustainable value for shareholders and this sale focuses us on Signature Aviation and our strong cash generative business.”

Source: City A.M.