WASHINGTON, DC --- Global alternative asset manager The Carlyle Group today announced it has agreed to acquire StandardAero, a global provider of aftermarket engine maintenance, repair and overhaul (MRO) services for the aerospace and defense industries, from Veritas Capital.
The transaction is subject to customary regulatory conditions and is expected to close by the end of the first quarter of 2019. Financial terms were not disclosed.
Russell Ford, CEO of StandardAero, said, “We are excited to partner with The Carlyle Group, and we thank Veritas Capital for its support and partnership. We look forward to working with Carlyle to further our aggressive growth trajectory as we continue providing world-class services to our customers as one of the world’s best and largest independent MRO service providers.”
Adam J. Palmer, Managing Director and Global Head of Aerospace, Defense and Government Services for The Carlyle Group, said, “Russell Ford and the StandardAero team have built a reputation for industry-leading capabilities and customer service. 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.”
Ramzi Musallam, CEO and Managing Partner of Veritas Capital, said, “We have enjoyed our successful partnership with StandardAero. Russ and the StandardAero team have generated robust growth while consistently delivering outstanding services to customers through a relentless commitment to excellence. The StandardAero partnership underscores Veritas’ commitment to growing and adding lasting value to businesses in the aerospace and defense industries. We wish the StandardAero management team all the best in their next phase of growth.”
Founded in 1911, StandardAero is one of the world’s largest independent MRO providers offering extensive services and custom solutions for commercial aviation, business aviation, military and industrial power customers. As an OEM-aligned strategic partner, StandardAero has developed a reputation for quality and performance that drives a sustainable competitive advantage and positions the company for future growth
Equity for the investment will come from Carlyle Partners VII, an $18.5 billion fund that focuses on buyout transactions in the United States.
Credit Suisse, RBC Capital Markets LLC and Macquarie Capital served as financial advisors to Carlyle, and Latham & Watkins LLP served as legal advisor.
Credit Suisse, Goldman Sachs Merchant Banking Division, RBC Capital Markets LLC, Macquarie Capital, Barclays, Jefferies LLC, Nomura Securities and Goldman Sachs have agreed to provide debt financing for the transaction.
Goldman Sachs & Co. served as lead financial advisor to StandardAero, and Morgan Stanley & Co. LLC also acted as a financial advisor on the transaction, and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor.
The Carlyle Group is a global alternative asset manager with $212 billion of assets under management across 339 investment vehicles as of September 30, 2018. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. The Carlyle Group employs more than 1,625 people in 31 offices across six continents.
StandardAero is one of the world largest independent maintenance, repair and overhaul (MRO) providers. StandardAero offers extensive MRO services and custom solutions for business aviation, commercial aviation, military and industrial power customers. About 6,000 professional, administrative and technical employees work in 38 major facilities around the world, with additional strategically located regional service and support centers all across the globe.
Veritas Capital is a leading private equity firm that invests in companies that provide critical products and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide, including those operating in the aerospace & defense, healthcare, technology, national security, communications, energy, government services and education industries.