Pan-European private equity firm Doughty Hanson has agreed to sell its defence and aerospace business Dunlop Standard to global buyout firm The Carlyle Group and Meggitt, the UK defence and electronics group, in a transaction valued at approximately $1.4 billion (€1.1 billion).
Under the definitive agreement, Carlyle will acquire the Standard Aero division of the Dunlop Group, which provides turbine engine maintenance and repair, for approximately $670 million. Meggitt will acquire the aerospace design and manufacturing division for approximately $770 million.
The sale of the aerospace company will return over 2.5 times Doughty Hanson’s original $267 million (€217 million) equity investment in 1998. The deal for Doughty was led by principal Harry Green.
Commenting on the transaction, Peter Clare, managing director at Carlyle, said in a statement: “Standard Aero represents everything we look for in our investments: industry leading technological capabilities, superior reputation with its customers and led by an outstanding management team.”
The transaction is Carlyle’s latest investment in the aerospace and defence sector, having completed 29 transactions in the last 15 years worth more than $7 billion. Globally, the firm has more than $18 billion under management.
Last week, Doughty Hanson received $850 million from the sale of German automotive operator Auto-Teile-Unger to Kohlberg Kravis Roberts. Last month the firm also received £42 million from its partial exit via IPO of Umbro, the UK sportswear maker.