That Spanish government approved this week in the Council of Ministers the sale by the British Rolls-Royces of the manufacturer of engines and turbines ITP Aero to a consortium led by the US fund Bain capitalwhere the Spaniards are Sapa Placencia Y JB capital. The operation is worth around 1,700 million euros.
The Spanish executive’s approval comes almost a year after the agreement between Bain Capital and Rolls Royce was announced in September 2021. The government’s approval was required because it was a foreign investment in a strategic company working on critical national defense projects was involved. For example, ITP Aero is involved in major projects such as the FCAS or aircraft engine maintenance Spanish Armed Forces.
The authorization includes a reserve of up to 27.5% of the shares for the formation of a consortium of Spanish industrial companies and institutions, including the participation of Basque governmentas explained by ITP Aero itself in a note.
The only two Spanish representatives currently are the Basque defense company Sapa with 5% and the fund JB Capital of Javier Botin, with 10%. In recent months, the receipt of Indra in the capital by ITP Aero and other defense sector companies, although there has been no firm movement.
The Ministry of Defense emphasizes that this agreement “sets out the conditions for the special protection of the industrial and defense interests of this operation” and stresses that it “provides guarantees in the field of programs of national and European interest for the location, the maintenance of employment and the headquarters It also notes that since talks began, Bain Capital has expressed “its commitment to a robust industrial project that will help ITP Aero Group become a leader in the aerospace and… to become a defense sector”. . The department you run Margaret Eichen He also points out that this agreement “represents the beginning of a new stage that guarantees the future and offers ITP Aero stability”.
Bain Capital, ITP Aero, emphasizes in its statement that “is aware that recent international events underline the need to guarantee the autonomy of the European Union and its Member States in certain strategic areas and in particular in the defense sector”. Under Bain Capital’s leadership, “the Company expects to further accelerate its growth trajectory and expand its industrial and technological capabilities.”
key role in aircraft propulsion
Carlo Alzola, CEO of ITP Aero, stated: “ITP Aero has been a successful company and leader in the aviation sector for more than 30 years. We are delighted to be working with a consortium led by Bain Capital who have expressed a deep connection to Euskadi, our team and our continued growth. I would like to give a special thank you to everyone at ITP Aero for their support throughout the sales process.”
“We look forward to working with all stakeholders – customers, partners, regulators – at this exciting time of industry transition towards more sustainable aviation, in which ITP Aero will play a key role as the national leader in aero-engines,” he added.
For his part Ivana SesaManaging Director and Co-Head for Europe Industrials at Bain Capital Private Equity, stated: “We are very pleased that the acquisition of ITP Aero has been approved by the Spanish government, successfully completing the regulatory approval process. We are fully committed to supporting the long-term stability and growth of ITP Aero and its vital role in the Basque Country and Spain.”
While, Tobias Weidener, Principal of Private Equity at Bain Capital, noted that “our business plan is closely aligned with ITP Aero’s management team and staff, as well as with the government. This is based on enhancing the company’s technological and industrial capabilities as a leading independent aviation company. We are now focused on completing the transaction.”