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Interested in contacting us about this deal?
Jason GatenbyChief Executive
T: +44 20 7336 9947
E: jason.gatenby@ montagu.com
Detailed Information
Aerospace Composite Technologies was formed to acquire the
Engineering & Heating Systems Business of Lucas Aerospace a
division of Lucas Industries. The transaction which involved £10.9
million of funding was co-led by NatWest Ventures and HSBC Private
Equity.
Lucas decided that the best method for the disposal was in the form of a controlled auction. HSBC Private Equity, together with NatWest Ventures, were able to go through into the final bidding round at with point the management became involved in the transaction. As a result, six of the senior managers subscribed for equity in the new company, now renamed Aerospace Composite Technologies Limited (“ACT”).
ACT was established over 50 years ago and has a strong heritage of technical excellence and quality. Under Lucas, it was operating as an independent entity and was able to maintain a distinct identity with its customers. The business produces three distinct product ranges: aircraft transparencies, ice protection equipment and electro luminescent lighting. These products are sold to a common customer base in all sectors of the aerospace market. In addition to original equipment supply, the business has substantial income from the sale of spares and refurbishment. The most significant element of sales are aircraft transparencies which it has manufactured for over thirty years. These are used for civil and military aircraft cockpits.
The management team is led by Phil Barrington who has become the managing director of ACT. He was pleased to be given the opportunity to participate in the acquisition and with his team was able to put a buyout plan together which formed the basis for the sanctioning of finance. Management retain a minority share. The equity was provided equally by HSBC Private Equity and NatWest Ventures. Senior debt and working capital facilities were provided by the Bank of Scotland.
The transaction was unusual in the sense that the parent company was not willing to give the management an opportunity to compete with the trade buyers. However, Lucas proved flexible once they realised the seriousness and intent of purpose of the venture capital providers and ultimately were supportive in bringing the management and the venture capitalists together to effect completion.
Lucas decided that the best method for the disposal was in the form of a controlled auction. HSBC Private Equity, together with NatWest Ventures, were able to go through into the final bidding round at with point the management became involved in the transaction. As a result, six of the senior managers subscribed for equity in the new company, now renamed Aerospace Composite Technologies Limited (“ACT”).
ACT was established over 50 years ago and has a strong heritage of technical excellence and quality. Under Lucas, it was operating as an independent entity and was able to maintain a distinct identity with its customers. The business produces three distinct product ranges: aircraft transparencies, ice protection equipment and electro luminescent lighting. These products are sold to a common customer base in all sectors of the aerospace market. In addition to original equipment supply, the business has substantial income from the sale of spares and refurbishment. The most significant element of sales are aircraft transparencies which it has manufactured for over thirty years. These are used for civil and military aircraft cockpits.
The management team is led by Phil Barrington who has become the managing director of ACT. He was pleased to be given the opportunity to participate in the acquisition and with his team was able to put a buyout plan together which formed the basis for the sanctioning of finance. Management retain a minority share. The equity was provided equally by HSBC Private Equity and NatWest Ventures. Senior debt and working capital facilities were provided by the Bank of Scotland.
The transaction was unusual in the sense that the parent company was not willing to give the management an opportunity to compete with the trade buyers. However, Lucas proved flexible once they realised the seriousness and intent of purpose of the venture capital providers and ultimately were supportive in bringing the management and the venture capitalists together to effect completion.