PE in CEE - Magnetic MRO
Country: Estonia
Full-service aircraft MRO specialist
COUNTRY | Estonia | RETURN | 4.6x |
GP | BaltCap | GROWTH | 7x revenue |
INVESTMENT | EUR 7.1 million | EMPLOYMENT | 260 new jobs |
SECTOR | Aircraft maintenance | INVESTMENT TYPE | Buyout and growth |
INVESTMENT | February 2010 | FUND OWNERSHIP | 100% |
EXIT | March 2018 | EXIT ROUTE | Trade sale |
Investment rationale
In 2010 Magnetic MRO was predominantly a subcontractor to its parent company, Scandinavian Airlines (SAS). BaltCap saw an opportunity to create an independent aircraft MRO (maintenance, repair and operations) provider that would be well positioned to serve the European and CIS markets from its base in Estonia. With the industry moving from selling manhours to providing comprehensive technical care, improved margins were possible. BaltCap aimed to triple Magnetic’s capacities by developing modern hangar facilities in partnership with Tallinn Airport.
Deal history and structure
BaltCap acquired 100% of Magnetic MRO from SAS in a limited auction process. The equity ticket was EUR 5 million. A further EUR 2 million was provided in 2012–2013 for additional investments. BaltCap’s shareholding was diluted to 70% in 2014 when an incentive package was introduced for the incoming management team.
