LDC, the Midlands leading private equity provider has today announced that it has completed its significant investment into the management buy-out of AIM Aviation Limited (“AIM” or “the Company”), a leading global provider of cabin interior design and build services to the aircraft industry.
The AIM deal forms part of LDC’s continuing strategy of investing in leading mid market businesses and builds on its £120 million of funding invested in six previous deal transactions so far in 2010. The MBO also reinforces LDC’s commitment to invest into the specialist manufacturing sector, a sector in which the LDC Midlands team has particular investment expertise.
With a celebrated trading history dating back to the 1920’s, AIM has a diverse customer base and enjoys longstanding relationships with a wide range of airlines, airframe OEMs and military authorities. AIM consists of three individual trading businesses – Jecco, Henshalls and Composites.
Jecco is a market leading provider of premium aircraft interiors for a number of the faster-growing airlines such as Emirates, Virgin Atlantic, Etihad and Qatar. Its products range from premium bar, lounge and cabin areas to mood lighting systems.
Henshalls produces galley systems and has, over recent years, established leading positions on the A320, A330 and B737 platforms alongside key customers such as China Southern, China Eastern, Shenzen and EasyJet.
Composites provides composite materials and products to a wide range of customers in aerospace and related industries including Jecco and Henshalls.
The management buy-out is being led by Group Chief Executive Mark Edwards, alongside Peter Forbes, Group Commercial Director and Managing Director of Jecco, Keith Robinson, Managing Director of Henshalls and Paul Seaford, Managing Director of Composites.
Chris Thomas, who has worked with LDC on a number of previous successful transactions becomes Chairman.
Commenting on the investment, Mark Edwards, Chief Executive of AIM said:
“The management team is delighted to be acquiring AIM at an exciting stage in the Group’s development. It is well positioned for growth and the financial backing of LDC and strategic support it brings can only help realise these opportunities.”
The deal was led at LDC by Managing Director LDC Midlands Martin Draper, alongside Investment Directors Steve Aston, Andy Lyndon and Andy Grove.
Commenting on the deal, Steve Aston said:
We are delighted to be investing in AIM. The business has benefitted from its relationship with growing airlines and being positioned on the wide-body platforms such as the A380, B787 and A350 where AIM’s premium interiors are particularly suited and go to the heart of an airlines branding. The strong OEM order book provides a robust base for further growth.”
Martin Draper, Managing Director LDC Midlands, added:
“AIM is a high quality business where all three companies have strong positions within their respective markets. LDC has a history of working with progressive specialist manufacturing businesses and we are delighted to be making an investment in AIM. We believe that the business offers clear opportunities to deliver significant future growth and has a team of talented executives with the ambition and commitment to take the business to its next stage.”
“This represents LDC Midlands fourth investment during 2010 and reflects our ongoing desire to invest through the cycle”.
The transaction was completed with support from a number of Birmingham-based advisers including Andy Currie and Jeremy Harrison at Catalyst Corporate Finance, Richard Edwards and Guy Thomas at Deloittes provided financial due diligence and Sue Lewis and Louise Fleming at Eversheds were legal advisers to LDC. Banking facilities were provided by Paul Whitehouse and Andy Taylor at Lloyds Banking Group and Peter Talbot and David Jamieson at RBS.