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.
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