FSI’s deal for the 14 per cent stake is subject to Avio’s anticipated listing on the Milan stock market taking place before the end of the year.
Although financial details about the deal were not disclosed Avio reported EBITDA of more than €380m in 2011.
The company, which is majority owned by buyout house Cinven, expects to raise between €400m and €500m through the IPO.
The listing is expected to take place in the summer, although Avio shelved plans to list on the Milan bourse last year amid volatile market conditions.
Most of the company’s business comes from the sale of civil and military engines, with 14 per cent from space technology and two per cent from civil maintenance.
Cinven bought its majority stake in Avio from Carlyle and Finmeccanica in 2006 for €2.6bn.
FSI has raised an initial €1bn and hopes to hit €7bn by the fund’s final close.
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