SR Technics, the Swiss aircraft maintenance business acquired by 3i and Star Capital for £272 million ($505 million; €398 million) in November 2002 following the collapse of the Swissair group, has expanded its international business using follow-on funding from its private equity owners.
The company has agreed to acquire FLS Aerospace, a Danish owned aircraft maintenance and engineering provider with major bases in the UK and Ireland. The enlarged SR Technics Group will have revenues of more than $1 billion and becomes the world‘s largest, independent provider of technical aircraft services.
Under the agreement, SR Technics will take over the company’s pension commitments, which at the end of 2002 amounted to DKr611 million ($104 million) at the end of 2002. The deal is expected to be finalised within three months.
SR currently employs some 2,800 personnel and is based at Zurich Airport, Switzerland. SR Technics has more than 270 international customers and provides maintenance, repair and overhaul (MRO) services for aircraft, powerplants and components. Customers of SR Technics include Martinair, Cathay Pacific, easyJet, KLM, British Midland, and Monarch.
SR Technics board member and 3i director Burkhard Brinkmann said the company had performed well since the initial buyout in 2002. “The acquisition of FLS Aerospace will accelerate the growth of the customer base and broaden the range of services provided by SR Technics.”
3i and STAR Capital Partners backed the management buyout of SR Technics from SAirGroup, which went into bankruptcy in 2002. Financing for the original deal was arranged by Intermediate Capital Group, which co-ordinated a E96m mezzanine facility. HBoS and RBS provided debt financing for the acquisition. SR’s management team took a twelve per cent stake in the original deal.