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LDC Completes significant investment into Airline Services Ltd

23.03.12

Leading private equity provider LDC has today announced that it has completed a significant investment to support the management buyout of Airline Services. The business is a leading provider of aircraft de-icing, ramp turnaround and cabin maintenance and retrofit services in the UK and overseas. 

The deal is the third transaction completed by LDC Midlands’ team using capital from LDC’s £200million manufacturing and specialist engineering commitment.

Airline Services provides essential maintenance, repair and overhaul services to more than 100 airlines and aviation businesses in the UK and internationally, including many of the industry’s leading airlines and aircraft lessors.

The group’s Workshop division incorporates the repair and overhaul of cabin interiors, aircraft seats, galley equipment, lighting, in-flight entertainment and other avionic systems from its facilities at Manchester and Stansted airports. 

Its Ramp Operations division operates from 12 UK airports, including Birmingham International,  and is a leading UK provider of essential turnaround services including aircraft de-icing and other ramp services which are all aimed at minimising aircraft time on ground. 

Based at Gatwick and East Midlands airports, the group’s Rotable Components business provides a rotables parts and wheel and brake management and repair capability from a substantial stockholding base.
Established for more than 25 years, the business has been led by Chief Executive Bryan Bodek since 2000 and has achieved significant growth in recent years across all three divisions as airlines increasingly out-source operations and with the increasing demand for cabin MRO services. 

The business is now well-positioned for future growth, with record order books and annual turnover approaching £60million. 

The deal was led by Investment Director Steve Aston, alongside Jon Pickering and Andy Lyndon. Steve Aston and Jon Pickering will join the board with immediate effect.

Commenting on LDC’s investment, Bryan Bodek, Chief Executive of Airline Services, said:

“LDC’s investment and support brings additional strategic input and financial backing to our business and will help us to deliver our ambitious growth plans. As well as increasing the pace of organic growth, we are keen to pursue a number of bolt-on acquisitions to broaden our service offering and position the business with new customers in the UK and overseas.”

Steve Aston, Investment Director LDC, said:

“Airline Services is a market leading business with an impressive and unique service proposition. Its integrated ‘turnaround’ services model is increasingly being adopted by scheduled airlines as well as those operating a low-cost model.  The market dynamics around cabin maintenance and retrofit have been very strong for some time and are expected to improve as the number of aircraft in service increases. We are backing an excellent management team and are looking forward to working closely with them to support their organic and acquisitive growth strategy.”

Reflecting on the completion of another successful new investment using funds from LDC’s specialist engineering and manufacturing initiative, Martin Draper, LDC’s UK New Business Managing Director added:

“This is an off market transaction sourced through our network of longstanding relationships.  Airline Services operates in a sector that we understand very well following on from our investment in AIM Aviation. This deal represents the third transaction from our £200million specialist engineering & manufacturing commitment and confirms our long term approach which is to partner with high quality management teams looking to private equity as a source of funding to facilitate the growth of their businesses.”

Boston-based CSP provided commercial and strategic due diligence, Peter McLintock at Squire Sanders provided legal advice to LDC, with Tremayne Ducker at Zeus Corporate Finance advising management and Newco.  Pinsent Masons provided legal advice to the vendors.

Issued on behalf of LDC by Citypress

Press information: Katie Dale, Citypress. Telephone: 0121 230 1783.


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