Private equity firm CataCap has agreed to acquire UK-based AerFin Holdings from U.S.-based CarVal Investors in partnership with management. AerFin is a leading global specialist in providing cost-saving aftermarket support solutions to the aviation industry. Led by an experienced team of aviation experts, they offer completely bespoke services ranging from whole aircraft and engine sale or lease, through to tailored flight-hour component support solutions based upon used serviceable material.

CataCap will become the majority shareholder in the group, which is expected to generate revenues of approximately DKK 780 million and an operating profit of approximately DKK 115 million in the current financial year. Together with Founder & CEO Bob James and the management team, CataCap will strengthen the business and make it ready for further international expansion.

CataCap has decided to further invest into the aviation sector on the back of the investment in TP Aerospace. The AerFin investment is a separate investment, the third in CataCap Fund II and the first CataCap platform investment outside of Denmark. Long-term CataCap investor Schroder Adveq joins as co-investor on the transaction.

AerFin has managed to gain high growth by extending life of aircraft parts enabling cost-effective solutions for airlines combined with preserving environment re-cycling of parts. This category is growing significantly as focus on cost and impact on the environment growth within the airline sector.

“AerFin is an outstanding company in a sector that has global reach. We have been following the company for some time, given that it has been announced fastest growing Aerospace & Defence company in Europe. We are truly impressed with the strength of the business model and the leadership team we are backing,” says Peter Ryttergaard, partner in CataCap.

AerFin founder and CEO Bob James, who will retain a significant equity interest in the business on completion supported by the existing leadership team, said, 

I am delighted to announce the partnership and investment from CataCap who I firmly believe will be the catalyst for continued sustainable growth and business development through their strategic alignment of interests bringing a true collaborative approach to our employees and our strategic partners”. Bob James, CEO

Plans for continued expansion

Bob James and the leadership team will continue to grow the business going forward. As part of the transaction the company has ensured significant financing lines to support continued growth and business development. 

The closing of the transaction is subject to customary closing conditions and is expected to occur in October.

CataCap has been assisted by Baker & Mckenzie, Deloitte and Oliver Wyman, as its legal, financial and commercial advisor, respectively.

The shareholders of Aerfin were advised on the sale of the business by EY Corporate Finance and A&L Goodbody.

Management has been assisted by Osborne Clarke and Grant Thornton.