21 July 2017

The transformational acquisition of ASC – 2 years on


September 2017 will mark the 2-year anniversary of AerFin’s acquisition of leading rotatable component business Airline Service Components (ASC), based at London Gatwick. AerFin made the purchase within a year of US-based CarVal Investors LLC acquiring a major equity shareholding in AerFin itself.

"We have become a reliable strategic partner to operators, providing optimum support solutions across our core service-lines. We have achieved this both through working as a single partner with airlines, but also through joint ventures, such as the Beyond.Fleet.Services programme we offer in conjunction with SR Technics."
Bob James, AerFin CEO

The ASC transaction was significant in many respects. Firstly, it demonstrated the financial capabilities of AerFin, following the investment backing of CarVal. Secondly, it offered the aerospace industry a company that could provide complete nose-to-tail support, diversifying from AerFin’s previously engine-centric service solutions. Furthermore, it also buttressed the company with an array of exceptionally experienced and talented team of employees.

Integrating the two firms was facilitated not only by the complementary services that they offered, but also the co-ordination and hard work of all the staff. AerFin’s Airframe Division Director and former ASC Managing Director, Chris Hooley commented, “When AerFin approached us, we saw this as a fantastic opportunity for the two companies to synergise into one collaboration and offer the market a unique complete nose-to-tail support solution. Operators much prefer a ‘one-shop experience’, as it improves efficiency, saves time and, fundamentally, reduces their service support costs. The integration of the businesses was a major project, but we are really seeing the benefits of this.”

Since the ASC deal, a number of aerospace companies have grown their portfolios or made acquisitions to offer a fuller range of services and solutions to airfleet owners and operators. Perhaps the most notable example of this is the growth of the original equipment manufacturers in the aftermarket.

Since the 2015 acquisition, AerFin has evolved quickly – both in the solutions it offers and its own processes. It has transitioned from a company that solely provided ad-hoc support solutions to being a long-term strategic support partner to airline operators as well as MROs. This is typified by AerFin’s flight-hour agreements with numerous different operators across an array of aircraft product lines.

AerFin CEO, Bob James said, “We have become a reliable strategic partner to operators, providing optimum support solutions across our core service-lines. We have achieved this both through working as a single partner with airlines, but also through joint ventures, such as the Beyond.Fleet.Services programme we offer in conjunction with SR Technics.”

AerFin continues to go from strength to strength, capturing numerous awards for prodigious growth since inception in 2010. With a brand-new generation of aircraft currently being phased in and operators phasing older fleets out, the aftermarket has never been such a competitive landscape. However, with the dynamism and resourceful management team in place, this market-shift continues to offer AerFin opportunity to broaden its horizons. The recent acquisition of 15 Embraer E170 EJets from Saudia Airlines symbolises the ambition of the company. 

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