Graphite Capital supports Aero Technics’ acquisition of Airbase
 

Graphite Capital, a leading mid-market private equity specialist, has provided development capital to Aero Technics, a civil aircraft maintenance business focusing on cabin services, to acquire Airbase Interiors, which specialises in the repair and dry cleaning of aircraft seats.

Aero Technics was founded in 2002 by its present chief executive, Steve Cloran. He has long experience in the aircraft services industry and will continue to lead the combined business, which will have operations in Manchester, Dubai, Heathrow and Gatwick with a customer base that spans many leading airlines.

The UK civil aircraft maintenance market is estimated to be worth £1.7 billion annually. Growth is underpinned by the continued expansion of the global aircraft fleet and the rise of low-cost carriers, which is increasing demand for outsourced maintenance services. The industry is fragmented and tightly regulated, with new approvals difficult to obtain. Airlines are keen to rationalise their buying around larger suppliers to simplify the management of their supply chains and to save costs.

The acquisition of Airbase is the first step towards building a group of businesses focused on aircraft servicing with significant growth opportunities in both the UK and internationally. Aero Technics will continue to focus initially on cabin maintenance services, and in particular seats. Potential further acquisitions have already been identified which would allow the company to broaden the range of its services and geographic scope, and gain significant synergies.

Steve Cloran, Aero Technics chief executive, said: 'There is an exciting opportunity here to build a broad-based business capable of supporting the airlines in a variety of service categories and in multiple locations. It is clear from our discussions with Graphite that they share our vision. We look forward to working with them to make it a reality.'

Mike Innes, Graphite senior partner, commented: 'The civil aircraft maintenance sector has strong growth potential and significant consolidation opportunities. We are delighted to be backing a management team with a proven track record in the sector and a clear strategy to build a group of significant scale.'

Mike Innes, Simon May and Alexandra Mills managed the transaction for Graphite.

Bowmark Capital backs £51 million buy-out of vehicle rental business, Nexus

Bowmark Capital, the mid-market private equity firm, is backing the buy-out of Nexus Vehicle Solutions, the leading B2B broker of rental vehicles in the UK, from its previous institutional investor, Livingbridge, for a total consideration of £51 million.  The business connects vehicle rental companies with corporate customers via a proprietary online booking and rental management system that automates and streamlines the procurement process.

Founded in Leeds in 1999, Nexus provides its 800 customers with access to over 500,000 vehicles sourced from 130 rental companies operating from more than 2,000 locations.  For rental companies, Nexus provides valuable incremental volumes that are otherwise difficult to access.  For customers, it fulfils often complex booking requirements that may involve specialist vehicles, remote locations or short-notice supply.   Rental plays an increasingly important role in the management of corporate fleets as a flexible, responsive and low-cost solution to short-term vehicle needs. 

Nexus has achieved impressive growth, capitalising on its industry-leading technology, high service levels and market-leadership position.  The company has twice appeared in the Sunday Times Profit Track 100, a league table of private companies with the fastest growing profit over a three-year period.  Bowmark has acquired a majority shareholding in the company, alongside the current management team. 

Bowmark partner Julian Masters said: “We first met the Nexus management team nearly five years ago and have been hugely impressed with their achievements over this period.  The company is well positioned to continue its growth by further penetrating the corporate market and by continuing to develop its technology platform.”

David Brennan, chief executive of Nexus, said: We have built a dynamic and market-leading business with a number of exciting new opportunities for growth.  We are delighted to welcome Bowmark on board and look forward to taking the business forward together.  Their experience of having invested in similar online B2B businesses should prove invaluable to us.”

Investors advised to ‘buy’ Berkeley as it remains on track for £2bn forecast

·         Group targets £2bn earnings forecast over three years

·         Dividend increased to 100 pence per share, beating analysts’ expectations

·         The Share Centre currently recommends Berkeley as a ‘buy’ for medium risk investors seeking income

As Berkeley Group reports its first half results Ian Forrest, Investment Research Analyst at The Share Centre, explains what it means for investors.

“First half results this morning from Berkeley Group see it on track to meet its earnings forecast of £2bn in aggregate over the next three years. This has led to Berkeley announcing an enhanced interim dividend of 100p per share, above analysts’ estimates of 72.15p. Investors should be aware that the group now plans to return a total of £16.34 per share, up from £13. With £4.34 already returned the remainder will be delivered evenly over the next six years.

“Berkeley remains confident that market conditions can provide good underlying demand in a stable operating environment.

“We continue to recommend Berkeley as a ‘buy’ for medium-risk investors seeking income due to the healthy and fairly secure dividend income, excellent prospects for housing demand in London and the South East, and a long track record of delivering for investors. After a strong rise in the share price after the general election we are advising investors to drip feed into the stock for now.”