US private equity giant Blackstone has agreed to buy MB Aerospace in a deal which is likely to be worth tens of millions of pounds.
Motherwell based MB Aerospace, which supplies engine components to the aviation sector, has grown from $28m turnover in 2008 to more than $200m in 2014 helped by a number of acquisitions in the United States.
Current chief executive Craig Gallagher had led a management buy-out of the business from Motherwell Bridge in 2007.
The terms of the latest deal were undisclosed but see majority shareholder Arlington Capital Partners selling to private equity funds management by Blackstone.
Mr Gallagher will continue to be chief executive of the business. He said: “This significant investment from Blackstone is very positive news for MB Aerospace as a company, for our staff and for our customers.
“It provides us with a huge opportunity to invest in our people and to continue to grow both organically and through acquisition both in the US and in Europe.”
The original buy-out led by Mr Gallagher in 2007 was backed from LDC, the private equity arm of Lloyds, and debt from Royal Bank of Scotland.
A secondary buy-out, backed by Arlington Capital Partners and also supported by LDC, took place in 2013.
Since the original buy-out MB Aerospace has bought a number of businesses in the United States such as Gentz Industries, Delta Industries, Norbert Industries as well as Thomson Aero in Somerset.
It now employs close to 1,000 around the world with 125 at its Lanarkshire headquarters. It also has a site in Burnley.
Bruce McEvoy, managing director at Blackstone, said: “We are thrilled to have the opportunity to partner with such a high quality management team.
“MB [Aerospace] is a best-in-class engine component manufacturing and repair platform, and we look forward to supporting the company as it continues to expand its capabilities during its next phase of growth.”
It is thought Mr Gallagher and some of the management team will be re-investing to retain a stake under the new structure.
MB Aerospace’s customers include Pratt & Whitney, Rolls-Royce, General Electric, Boeing, United Technologies Aerospace Systems, GKN, Mitsubishi Heavy Industries, and the US Department of Defense.
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