Cinven could announce sale of Avio to General Electric this week


London-based buyout firm Cinven is reportedly nearing a deal to sell Italian aerospace parts manufacturer Avio to General Electric for more than €3bn.

The industrial conglomerate is finalising an agreement to buy the company and a deal could be closed between Tuesday and Wednesday, with an announcement on Thursday, Reuters quoted an unnamed source as saying.

“Nothing is closed, but there is a desire to get it done before the (Christmas and New Year) holidays,” Reuters quoted a separate source as saying.

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.

Safran, a French company that has interests in airplanes, aerospace and defence, was also in active talks to buy the business, as were Clessidra, CVC and state-backed Fondo Strategico Italiano.

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.

Copyright © 2012 AltAssets