3i and UK-based STAR Capital Partners have reached an agreement with SAirGroup for the EURO425 million buyout of SR Technics. The deal will be supported with senior debt provided by mandated lead arrangers Bank of Scotland (bookrunner) and Royal Bank of Scotland.
Intermediate Capital Group (ICG) has won the mandate to provide a SFr127.5 million mezzanine facility to support the buyout. ICG plans to hold 50 per cent of this and to syndicate half to a small number of mezzanine investors.
The buyout, which is subject to regulatory approval that will take up to eight weeks, is the largest MBO in the transport and logistics sector this year. 3i and funds managed by 3i will be majority shareholders, while SR Technics’ management team and workforce will take a 12 per cent stake.
SR Technics is specialised in providing aircraft, engine and component services for commercial aircraft, and the buyout has been executed to take advantage of the growing trend towards outsourcing in the aviation sector for specialist services.