24 September 2019

CataCap will become the majority shareholder in the group, which generated revenues of DKK 760 million and EBITDA of DKK 140 million in 2018. Together with founder and CEO Bob James and the leadership team, CataCap is looking to strengthen the platform and prepare the business for further international expansion.

The acquisition of AerFin marks CataCap’s second platform investment in the aviation aftermarket sector. In addition, the investment in AerFin is the first CataCap platform investment outside Denmark. Long term CataCap investor Schroder Adveq joins as co-investor in the transaction.

AerFin has realised revenue growth of 38% per year from 2015 to 2018 by extending the useful life of aircraft parts, driving cost-effective solutions for airlines, combined with making a positive contribution to the environment through recycling of parts. The aviation aftermarket is generally attractive with strong underlying growth drivers, including a projected yearly increase in spend on used serviceable materials of 6-7% per year through 2029, driven primarily by an increased focus on costs and environmental impact in the airline sector.

”AerFin is an outstanding compay in a sector that has global reach. AerFin has received several awards for solid growth and has been in our sight for quite some time. We are truly impressed with the strength of the business model and the leadership team we are backing. Following our acquisition of TP Aerospace in 2017, we have developed a clear ambition of increasing our exposure in the sector. This is an industry we know well and we are convinced that Aerfin is an excellent platform and that CataCap is the right partner for AerFin to help drive continued growth”, says Peter Ryttergaard, Partner in CataCap.

AerFin founder and CEO Bob James, who will retain a significant equity interest in the business, supported by the existing leadership team, said: ”I am delighted to announce the partnership and investment from CataCap who I firmly believe will be the catalyst for continued sustainable growth and business development through their strategic alignment of interests bringing a true collaborative approach to our employees and our strategic partners”.

Plans for continued expansion.
Bob James and the current leadership team will continue to lead the business following the transaction with the clear ambition of continuing the organic growth journey. As part of the transaction, the company has secured adequate financing to support continued growth and business development. The closing of the transaction is subject to customary closing conditions and is expected to take place in October 2019. CataCap was assisted by Baker & Mckenzie, Deloitte and Oliver Wyman, as its legal, financial and commercial advisor, respectively. The shareholders of AerFin were advised by EY Corporate Finance, A&L Goodbody and KMPG. Management was assisted by Osborne Clarke and Grant Thornton.

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