Aerospace is the opening topic, as Blackstone prepares to exit a service provider that it bought back in 2015. We’ve got plenty of figures on that one for you, including the enterprise value and price multiples.
Next, EAB Private Equity invests in an industrial maintenance services company.
We then look at Stellex Capital Management making a platform investment in a company that makes electronic components for the power industry, before we focus on reports of private equity interest in a UK resort company that Brookfield has put up for sale.
Aerospace
Blackstone plans to sell MB Aerospace to Barnes Group for an enterprise value of around $740 million.
MB Aerospace is a provider of precision aero-engine component manufacturing and repair services serving major aerospace and defence engine manufacturers, Tier 1 suppliers, and maintenance, repair and operations providers. The company is based in Motherwell in Scotland. It has another 10 facilities and approximately 1,450 employees across the US, UK, Poland and Taiwan.
Blackstone acquired MB Aerospace in a leveraged buyout in 2015 from Arlington Capital Partners.
The transaction is expected to close in the fourth quarter of 2023, subject to regulatory approvals.
MB Aerospace is expected to generate around $330 million of revenue and $65 million of EBITDA in the calendar year 2023.
Barnes anticipates that the effective purchase price multiple will be around 11.4x 2023 EBITDA and 8.9x inclusive of pro forma estimated run rate cost synergies.
MB Aerospace will become part of Barnes Aerospace upon closing of the transaction.
Barnes will likely finance the transaction with cash on hand and additional acquisition financing, according to a release.
Barnes estimates net leverage to be between 3.7x and 3.9x consolidated EBITDA, with a plan to reduce net leverage to below 3.0x within 12 months and 2.5x within 24 months following closing.
“The acquisition of MB Aerospace, the largest in Barnes’ history, is a transformational opportunity that is a significant catalyst for our already world-class aerospace business,” said Thomas J Hook, president, and CEO of Barnes. “MB is an exceptional strategic fit for us with highly complementary programme focus, global operations, technical capabilities, and product offerings.”
Reorganisation
EAB Private Equity, part of Evli Group, will make an equity investment in Elcoline, a company which provides industrial maintenance services and implements technical projects.
Elcoline is based in Varkaus, Finland. The company had a pro forma revenue of €67 million in 2022.
The total investment in Elcoline is over €20 million, which will be used to continue the company’s acquisition-driven growth plan and reorganise the current ownership structure, according to a release.
EAB’s investment will accelerate Elcoline’s growth to a size of over €200 million, the release said.
Elo Mutual Pension Insurance Company and investment companies Tesi and Arvo Sijoitusosuuskunta were the other investors involved in the transaction.
Jere Räisänen and Jouko Juvonen, Elcoline’s founders and key personnel will continue as significant shareholders in the company.
“The company is well positioned to benefit from the prevailing market trends, such as industrial companies’ accelerating investments in more sustainable production, the focus on larger service offerings and the outsourcing of maintenance operations,” said Kalle Kekkonen, managing partner at EAB. “Customer demands and the fragmentation of the industry are driving consolidation, which we want to be part of.”
Power
Stellex Capital Management has made a platform investment in Bryden Capital (BCL) and MPL Group, together known as MSS Group, a supplier and manufacturer of critical electronic components focused on the global power industry.
MSS is based in Manchester, UK and has manufacturing operations in India and Poland and distribution facilities in the US and across Europe.
Brian Hall, MSS’ founder, and Liam Hall, MPL’s key shareholder, will reinvest in MSS alongside Stellex.
“We are excited to support MSS’ organic and international expansion plans,” said Mark Redman, managing partner at Stellex. “Our goal is to help MSS climb the value chain and capture new markets while continuing to be a trusted, world-class partner to its blue-chip customers in the global power market.”
Holiday plans
PE Hub Europe’s Nina Lindholm wrote a round-up last week of the busy holiday and leisure sector, which seems to be attracting more and more private equity interest as the covid pandemic becomes an ever-distant memory.
There looks to be more action on that front.
We wrote a few weeks ago about a report in the Financial Times that alternative investment manager Brookfield had launched a sale process for UK holiday resort company Center Parcs. The price tag was £4 billion ($5 billion; €4.6 billion) to £5 billion, according to people familiar with the situation cited by the FT.
Now, CVC Capital Partners is thought to be planning an indicative proposal for the company this month, according to sources spoken to by Sky News. The bid would be via CVC’s long-term Strategic Opportunities fund, the sources said.
Infrastructure fund Antin is also thought to be considering an offer, the sources told Sky News.
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