Report: Carlyle in A$350m aviation buy

The Carlyle Group, which last month formed a new company in partnership with RPK Capital Management to purchase assets in the commercial aviation sector, has now reportedly signed a deal to buy Contract Aviation, an Australian aviation and helicopter services company, for A$350 million (€239.4 million; $293.9 million). 

Carlyle declined to comment.

Contract Aviation, which has been created through the merger of Australian companies Alliance Airlines and Airwork Helicopters, was initially expected to list its shares through an initial public offering (IPO) expected to raise about A$300 million in late March or early April, according to The Australian.

However, the company then entered into talks with Carlyle and put an end to its IPO plans, the Australian daily reported.

Last month, Carlyle agreed to invest $600 million of equity in global commercial aviation assets in partnership with RPK Capital Management, through the formation of a new company. The $600 million in equity comes from Carlyle Partners V, Carlyle Strategic Partners II, RPK principals and other investors.  

In March, Carlyle sold Vought Aircraft, a parts manufacturer for airplanes, to Triumph Group for $1.44 billion, including $525 million in cash. The deal included the retirement of Vought debt. Following the closing of the deal, Carlyle will own 31 percent of the outstanding stock in Triumph, which also makes parts for airplanes.