Empire Aviation Group for $22 million (Rs 120.9 crore).
Through this investment, Air Works India plans to expand its aircraft business in Middle East and provide its services to customers in India.
Founded in 2007, Empire Aviation, an aircraft asset management company, provides private aviation services such as aircraft sales, aircraft management, charter and finance and insurance. The company focuses on a distinctive asset management approach to private aviation.
“The transaction will be financed by taking senior secured debt from a consortium of four private equity firms led by KKR & Co. LP,” said Vivek Gour, managing director of Air Works.
Air Works is a leading independent provider of aviation MRO (maintenance, repair and overhaul) services in India. The MRO market in India has experienced rapid growth in recent years, with increasing demand for new aircraft driven by demand from both the commercial and the business aviation sectors.
Founded in 1951, Air Works has successfully transformed itself from a family run business focused on providing maintenance services to business aircraft, into a professionally managed organisation providing a full suite of services to business as well as commercial aircraft in India, the UK, the Middle East and South East Asia. The company has a first mover advantage in the domestic market and has built up strong relationships with aircraft OEM’s (original equipment manufacturers), including Gulfstream, Bombardier, Honeywell and AgustaWestland.
Air Works is planning to acquire a company which provides maintenance, repair and overhaul services for aircraft engines. For this acquisition, it is looking at Australia, South Africa, the US and UK and may raise $35 million to $50 million.
In 2011 May, the company raised $4.7 million from Elephant Capital Fund. The company acquired the MRO business of an established competitor, InterGlobe General Aviation (IGGA) during the same time as the investment by Elephant Capital. In November 2011, an additional GBP 0.5 million was invested for 0.7% stake in the company on a fully diluted basis as the second tranche to the initial funding. In 2007, GTI and Punj Lloyd together invested $25 million in the company, while in 2010, GTI made a further investment of $27 million in the company along with New Enterprise Associates.