UK mid-market private equity house Dunedin has sold Fernau Avionics, a designer and manufacturer of navigational aids to the global aviation market, to Moog Controls, part of the US-bas
UK mid-market private equity house Dunedin has sold Fernau Avionics, a designer and manufacturer of navigational aids to the global aviation market, to Moog Controls, part of the US-based Moog group, for GBP32m.
Brian Scouler, the director of Dunedin who was on the board of Fernau, says: ‘Even in depressed M&A markets like these, a high quality business with world leading technology can still attract a premium price. Fernau is an excellent example of private equity doing what it is good at, backing the management buyout of a small subsidiary of a larger group and investing in the growth of the company to deliver long-term returns. The business has seen exceptional growth since Dunedin’s original investment in May 2007, with sales doubling from GBP10m to an expected GBP20m in the current year.’
Founded in 1970, the company has sold over 1,000 navigational systems which are installed throughout the world. It supplies the civil and military aviation markets in the UK, Europe, North America and the Far East. In addition to the design and manufacture of navigational aids, Fernau provides associated services including site survey, installation, system commissioning, training, spares and repairs, and logistics support.
Fernau employs over 80 people, an increase of over 20 per cent since the buyout, at its manufacturing site at Luton, where it has recently invested in new production facilities, increasing capacity by over 30 per cent.
Kevin Kearns, managing director of Fernau, says: ‘Quite simply Dunedin’s support and involvement in our business has been exceptional. This has included setting the growth strategy for the company, the appointment of two Dunedin directors to help management implement this strategy and an increased focus on cash generation and working capital management. This allowed the company to repay buyout debt ahead of schedule. Dunedin also carried out a market review which added real insight to the company’s market position and which confirmed Moog as the ideal strategic partner.’
