General Electric is reported to be in the lead to buy Avio, the Italian aerospace parts manufacturer backed by London-based buyout heavyweight Cinven, while talks with Clessidra, CVC and state-backed Fondo Strategico Italiano (FSI) are said to have stalled.
Reuters reported the news, citing unnamed sources.
The business, which also supplies engine parts to General Electric, was put on the market as the possibility of a long-awaited Milan listing faded amid continued market volatility in Europe.
The company boasted revenue of over €2bn last year and EBITDA of €384.2m, and could fetch more than €3bn, according to separate press reports.
Safran, a French company that has interests in airplanes, aerospace and defence, is also in active talks to buy the business, the report said.
FSI is also understood to be in advanced talks to buy state-backed defence business Finmeccanica’s 14 per cent stake in the company, the report added.
Cinven bought its majority stake in Avio from Carlyle and Finmeccanica in 2006 for €2.6bn.
Most of the company’s business comes from the sale of civil and military engines, while 14 per cent is sourced from space technology and two per cent from civil maintenance.
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