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Oak Hill set to let jet company go to Alcoa for $2.85bn

26 Jun 2014

fighter-jet_sqPrivate equity firm Oak Hill Capital Partners will sell jet engine component manufacturer Firth Rixson to aerospace parts company Alcoa for $2.85bn in cash and stock.

Oak Hill will receive $2.35bn cash and $500m Alcoa stock in the deal with an additional potential earn-out of $150m.

The private equity firm bought US and UK-based Firth Rixson in 2007 and strengthened the company’s position globally by “investing in new capabilities and technology in partnership with the leading aerospace engine customers”, according to Oak Hill’s MD Denis Nayden.

Firth’s revenues were $1bn in 2013 and are expected to grow by 60 per cent during the next three years and contribute $350m EBITDA in 2016.

As a result of the sale Alcoa’s annual aerospace revenues are expected to increase by 20 per cent to $4.8bn this year.

The sale is expected to be completed by the end of 2014.

In January Oak Hill Advisers and OHorizons Global bought German company DGH Group out of administration. The business supplies aluminium and magnesium high pressure die casting components to the automotive industry.

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