Global private equity firm the Carlyle Group has reached a definitive agreement to acquire Arinc, a global provider of transportation communications and systems engineering, from its curre
Global private equity firm the Carlyle Group has reached a definitive agreement to acquire Arinc, a global provider of transportation communications and systems engineering, from its current shareholders, including around a dozen leading US commercial airlines as well as Boeing, Ford and Goodyear.
Founded to provide reliable and efficient radio communications for commercial airlines, Arinc develops and operates communications and information processing systems and provides systems engineering and integration solutions to the airport, aviation, defence, and surface transportation industries as well as to government bodies. Headquartered in Annapolis, Maryland with regional offices in London and Singapore, Arinc has around 3,300 employees in 100 offices worldwide, generating annual revenues of more than USD900m.
‘This is an important step in the evolution of Arinc,’ says chairman and chief executive John M. Belcher. ‘We have worked very hard to find a partner who shares our vision and believe that Carlyle’s international presence, financial resources and expertise in the aerospace, defence and communications sectors will be instrumental in the continued expansion of our business.’
Peter Clare, a Carlyle managing director and head of the global aerospace and defence sector team, says: ‘We have long admired Arinc’s leadership position and impressive track record of growth. We believe that it is well positioned to capitalise on several favourable macro trends in both its commercial and government market segments.’
His colleague Ian Fujiyama, the Carlyle managing director who led the transaction, adds: ‘John and his team have successfully leveraged Arinc’s unique domain expertise and technology leadership to offer innovative new solutions to its customers.’
The transaction is expected to close by October 31 this year, subject to regulatory approval. Financial details have not been disclosed, but AMR Corporation, the parent of American Airlines, says it expects to receive USD194m in proceeds the sale, while UAL Corporation, the parent of United Airlines, expects to receive more than USD125m. Airlines currently own 90 per cent of Arinc’s shares.
