Doughty Hanson, the London-based pan European private equity firm, has given preferred status to The Carlyle Group to acquire Dunlop Standard Aerospace, according to reports in The Financial Times.
Carlyle has teamed up with Meggitt, the UK-based defence, aerospace and electronics supplier to launch a bid that is understood to be valued in the region of £900 million (€1.34 billion; $1.65 billion).
BBA, the UK-based aviation services group, is also keen to remain in the auction process should Carlyle’s bid not be accepted, according to the FT. The deal is expected to conclude within the month.
The prospective trade sale follows a spate of recent IPO activity for Doughty. The firm realised £42 million from the flotation of UK sportswear maker Umbro on the London Stock Exchange at the end of May, lower than the indicated value for the shareholding.
Two days earlier, Doughty indefinitely postponed the Frankfurt IPO of Auto-Teile-Unger, the German operator of automotive parts stores and repair shops, citing adverse market conditions.
The sale of Dunlop Standard Aerospace will come as a welcome boost to the firm’s current fundraising process, which held an initial €700 million close last year towards a final target of €3 billion.