Lehman Bros sees soaring airplane exit

The merchant banking arm of Lehman Brothers, along with private investor Bernard Schwartz, have agreed to sell aircraft parts maker K&F Industries to Aurora Capital Group for $1.06bn cash.

Lehman Brothers Merchant Banking and private investor Bernard Schwartz will realise huge gains on the sale of airplane parts maker K&F Industries to Aurora Capital Group.

The deal, announced today, is valued at $1.06 billion (€850 million), according to a press release. Lehman Brothers Merchant Banking has invested a reported $83.8 million in the company since 1998.

Schwartz is the chairman and CEO of Loral Space & Communications, which filed Chapter 11 bankruptcy recently.

K&F makes aircraft wheels, brakes, anti-skid systems, fuel tanks, iceguards and oil booms, according to a press release.

Aurora Capital is based in Los Angeles.