Cinven has agreed the sale of Avio Space Propulsion, an international operator in space launchers and space propulsion, to Space2 and Leonardo-Finmeccanica together with Avio’s management.
This represents a full realisation for Cinven from its shareholding in Avio Group.
Cinven originally acquired Avio from Carlyle in December 2006, alongside Finmeccanica as a minority shareholder, for EUR2.57 billion.
At the time of the acquisition, the group comprised both aviation and space businesses.
Avio’s aviation business was sold to GE in August 2013 for a total consideration of EUR3.3 billion, generating around EUR1 billion of value for the fourth Cinven fund. Following the acquisition of Avio’s aeroengine business (now called Avio Aero), GE committed a further USD1 billion in investments to the Avio Aero sites over the following five years.
The new company, Avio’s Space Propulsion business, kept the name Avio and is headquartered in Colleferro, Italy with operations across Italy, France and French Guyana. It employs over 800 people, 30 per cent of whom are involved in R&D activities.
In 2015, Avio Space Propulsion generated revenues of EUR279.2 million (2014: EUR224.5 million) up 24.4 per cent.
Eugenio Preve, senior principal at Cinven, says: “When Cinven acquired Avio Group, it had a strong defensible market position given its technological leadership in key areas, long-term contracts and diversified business. It was also well positioned to capture increased market share in the promising new aerospace programmes, to improve its operating efficiencies and to expand internationally.
“Avio is a good example of a successful industrial investment for Cinven. Today Avio is recognised as a standard setter for Italian technology innovation and plays an important strategic role in the global space industry. We are delighted that Space2 and Leonardo-Finmeccanica are acquiring Avio and will continue to invest in the business and its long-term growth. We wish the team every success.”
