Private equity giants said to circle Rolls Royce’s Spanish aerospace parts unit, deal could hit £1bn – report


Private equity giant KKR, Carlyle and Blackstone are reportedly circling Rolls Royce’s £1bn Spanish business ITP Aero.

The unit, which makes parts for the Eurofighter Typhoon fighter jet, has been on the block for some time, with the Daily Mail reporting talks to sell it to a Spanish tech group last year pegged the valuation at about £1.4bn.

It said Rolls Royce was currently searching for ways to raise cash and cut costs after seeing air travel decimated by the global coronavirus pandemic.

KKR recently sealed a $1bn buyout of a fleet of Etihad Airways aircraft, in a deal which will see them leased back to United Arab Emirates airline and other international flight operators.

Earlier this year Aero Capital Solutions hit a $413m final close for its second institutional investor-backed fund.

Airlines have been particularly heavily hit by the coronavirus crisis, with global revenues in the industry predicted to drop by more than half this year to about $314bn, according to a report in April from the International Air Transport Association.

Copyright © 2020 AltAssets

Get the latest PE News & Research delivered to your inbox every morning