The Carlyle Group has agreed to acquire StandardAero, a leading MRO provider, from private equity owner Veritas Capital for an undisclosed amount, the companies announced Dec. 18.
This will become the second time that Caryle has purchased StandardAero—the first was in August 2004. Three years later, it sold the MRO to Dubai Aerospace Enterprise for $1.9 billion. Then in May 2015, DAE sold it to Veritas for $2.1 billion.
“Russell Ford and the StandardAero team have built a reputation for industry-leading capabilities and customer service,” said Adam Palmer, managing director and global head of aerospace, defense and government services for Carlyle. “StandardAero is well positioned in an attractive market and we look forward to building on its strong foundation by helping it grow and meet evolving customer needs.”
Equity for the investment will come from Carlyle Partners VII, an $18.5 billion fund that focuses on buyout transactions in the United States. In addition, debt financing will come from Credit Suisse, Goldman Sachs’s Merchant Banking Division, RBC Capital Markets, Macquarie Capital, Barclays, Jefferies, and Nomura Securities.
The companies said the transaction is subject to customary regulatory conditions and is expected to close by the end of the first quarter of 2019, which is March 31.
Aviation Week reported in October that StandardAero is a $3 billion-a-year business. Founded in 1911, it has become one of the A&D industry’s largest independent maintenance, repair and overhaul (MRO) providers from helicopter engines to airliner airframe parts. Growth has come in part by buying and rolling up specialists across the sector.
Scottsdale, Arizona-based StandardAero counts roughly 6,000 professional, administrative and technical employees in 38 major facilities around the world, with “additional strategically located” regional service and support centers, as well.