Spanish government clears sale of ITP Aero to Bain Capital

The Spanish government approved this week in the Council of Ministers sale by the British Rolls Royce from the engine and turbine manufacturer ITP Aero to a consortium led by the American fund Bath Capitalin which the Spaniards are Sapa Placencia there JB Capital. The operation is valued at approximately 1,700 million euros.

The Spanish executive’s approval comes almost a year after the deal between Bain Capital and Rolls Royce was announced in September 2021. The government’s approval was needed because it was a foreign investment in a strategic company involved in critical projects for national defense. ITP Aéro participates, for example, in major projects such as the CIF or maintenance of aircraft engines Spanish Armed Forces.

The authorization includes a reserve of up to 27.5% of the shares for the constitution of a consortium of Spanish companies and industrial institutions, among which the participation of the Basque governmentas ITP Aero itself explains in a note.

For the moment, the only two Spanish representatives are the Basque defense firm Sapa, with 5%, and the JB Capital fund of Javier Botin, with 10%. In recent months, the entry of Indra in the capital of ITP Aero and other companies in the defense sector, although there was no firm move.

“solid project”

The Ministry of Defense stresses that this agreement “establishes the conditions for the special protection of the industrial and defense interests of this operation” and stresses that it provides “guarantees in the field of programs of national and European interest for localization, job retention and registration office. He also points out that Bain Capital has expressed “its commitment to a robust industrial project” since the start of the talks “that will help the ITP Aero group to become a leader in the aerospace sector and defense both at European and global level”. The department you head Margaret Oaks He also underlines that this agreement represents “the beginning of a new stage which guarantees the future and offers stability to ITP Aero”.

Bain Capital, underlines ITP Aero in its press release, “is aware that recent international events highlight the need to ensure the autonomy of the European Union and its Member States in certain strategic areas and in particular in the defense”. Under Bain Capital’s leadership, “the company plans to further accelerate its growth trajectory and the expansion of its industrial and technological capabilities.”

Key role in aircraft propulsion

Carlos Alzola, CEO of ITP Aero, said that “for more than 30 years, ITP Aero has been a successful company and a market leader in the aerospace field. We are delighted with our association with a consortium led by Bain Capital, which has expressed a deep commitment to Euskadi, our team and our continued growth. I would like to especially thank all the employees of ITP Aero for their support during the period of the sales process”.

“We look forward to working with all stakeholders – customers, partners, government – in this exciting time of industry change towards more sustainable aviation, where ITP Aero will play a key role as a national leader in the field of aeronautical propulsion”, he added.

For its part, Ivano SessaManaging Director and Co-Head of Europe Industrials at Bain Capital Private Equity, said, “We are delighted that the acquisition of ITP Aero has received clearance from the Spanish government, successfully completing the regulatory approval process. We are fully committed to supporting ITP Aero’s long-term stability and growth, as well as its crucial role in the Basque Country and Spain.

Whereas, Tobias Weidner, director of private equity at Bain Capital, pointed out that “our business plan is deeply aligned with the management team and employees of ITP Aero, as well as with the government. This is based on the development of the technological and industrial capacities of the company as a leading independent aeronautical company. We are now focused on completing the transaction.”

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