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Carlyle eyeing up to $1.5bn in Arinc aerospace exit

26 Feb 2013

plane-10_sqPrivate equity giant The Carlyle Group has reportedly hired JP Morgan Chase and Evercore Partners to advise on a sale of aerospace and defence company Arinc.

The company is expected to draw interest from trade buyers and could fetch between $1.2bn and $1.5bn according to Reuters, which cited three people familiar with the matter.

They said an auction was expected to be launched in the spring.

Carlyle bought Arinc from six US airlines in 2007 for an undisclosed sum, and attempted to sell it three years later before scrapping the plans after buyers failed to meet the $1bn asking price.

Several buyers also expressed interest in buying different parts of the company at that point, but Carlyle did not want to break up the business.

That policy changed last year when it sold the consulting services arm of Arinc to Booz Allen Hamilton Holding Corp to make a bid for the rest of the company more attractive.

Arinc designs communication systems which help pilots contact ground control, and provides technical analysis and engineering services to the US Department of Defence and its armed forces.

Its consulting section is believed to have about $30m of earnings before interest, taxes, depreciation and amortisation, and could fetch six or seven times that figure in a sale.

Arinc was founded in 1929 to provide for the communication needs of the fledgling air travel industry, and now provides engineering solutions for aerospace, defence, airports, governments and security networks.

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