20th Mar 2015 09:36
LONDON (Alliance News) - Better Capital PCC Ltd Friday said it has acquired CAV Aerospace Ltd through the BECAP12 Fund LP.
Better Capital PCC has two feeder cells: the 2009 Cell and the 2012 Cell. The cells make investments through two funds established as Guernsey limited partnerships. The funds target investments in companies that are distressed or struggling.
BECAP12 Fund, part of the 2012 Cell, has fully acquired CAV Aerospace, a specialist aerospace manufacturing business, after committing an initial GBP40 million to fund the acquisition and to provide CAV working capital and to grow the company through bolt-on acquisitions, said Better Capital.
"It is a business that Better Capital has been tracking for several years and operates in a growing market which is expected to continue to perform well. Historically CAV has received a good level of investment; however, it will benefit significantly from strengthened operational support," it said.
"CAV operates in the same sector as the 2009 Fund's investment in Gardner Aerospace. For the avoidance of doubt, these two investments will be run independently from each other, specifically, the ownership of both entities is held by separate funds and the businesses will be managed by separate teams," it added.
Better Capital said CAV reported revenue of GBP74 million for the year ended December 31, with the business operating close to breakeven.
CAV supplies metallic components and sub-assemblies to aircraft manufacturers, including Airbus, Embraer and Gulfstream, Better Capital said. The company operates from seven sites - four in the UK, two in Poland and one in Mexico.
Following the acquisition, the 2012 Fund has cash of GBP48 million which can be used to make further investments.
Better Capital shares were down 0.8% to 90.50 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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