06 Nov 2002
STAR Capital acquires a cornerstone shareholding in SR Technics Switzerland
STAR Capital Partners has acquired a cornerstone shareholding in SR Technics as part of a management buyout of the company by a consortium of financial investors led by 3i. The investor consortium and management have signed a contract with SAirGroup to buy out SR Technics Switzerland in a €425 million (£272 million) transaction. SR Technics is one of the world's largest service companies providing comprehensive technical support for aircraft, engines and components.
3i and Star Capital have agreed with the SAirGroup to buy out SR Technics, subject to approval by the authorities that is expected in 4-8 weeks. The total deal size will be €425 million (£272 million) including additional investment in the business with equity provided by 3i, STAR, management and co-investors. This will make it Europe's largest management buyout in the transport and logistics sector this year. The management team of SR Technics and its workforce will have a 12% stake in the company. Star Capital will be a strategic partner and cornerstone shareholder.
SR Technics has significant growth potential
SR Technics currently employs a workforce of 2,900 and expects a turnover of € 750 million in 2002. Together with a number of supporting banks the new ownership of SR Technics will provide very solid financial backing and will enable SR Technics to pursue an aggressive growth strategy.
Hans Ulrich Beyeler, CEO and President of SR Technics comments:"Our customers entrust us with the responsibility for the technical services in support of the valuable investments into their fleet of aircraft. SR Technics stands for excellence in service and a highly professional staff dedicated to the provision of total care, which sets industry standards. We are very glad that our new ownership provides us with the financial strength and stability our customers can depend on for continued and expanded services. As co-owners of the company, the management and all employees of SR Technics will remain strongly committed to meet the high expectations of our customers."
Partners we can depend on
Paul Gough, a Director of STAR Capital Partners, comments: "STAR is excited to be part of the consortium to acquire SR Technics. SR Technics provides a service to its customers that directly reflects STAR's strategy of providing outsourced solutions for a company's non-core and capital intensive activity. We believe that there is a unique opportunity to combine SR Technic`s industry leading expertise and outstanding reputation with capital from the investor consortium to aggressively grow the company's complete asset management service, allowing airlines around the globe to realise cash from investments in non-core capital assets, generate substantial cost savings and increase the flexibility of their cost structure.
David Osborne, Director 3i comments "3i's investment in SR Technics reflects a willingness to make continued investment in the aviation market as well as to buy-out transactions. SR Technics is a market leading business, and together with the ambitious and committed management team, we will steer the company to achieve significant growth over the next years through extending its customer base and growing the range of services provided."
A Chairman with a wealth of aviation experience
Frank Turner, an engineer with 40 years of experience in the aviation industry including manufacturing, maintenance and operations, who will become Chairman of SR Technics said: "I look forward to chairing SR Technics' Board and being part of the team that now has the financial resources to grow this highly respected company into a commercial success as a total care provider to the airlines of the world."