Aircraft maintenance firm SR Technics, which employs 1,100 people in Dublin, has been acquired by three companies based in the United Arab Emirates in a deal worth €1.1 billion.
SR Technics, which was previously known as FLS Aerospace, has three main operation centres in Zürich, Stansted and Dublin. The company has undergone several ownership changes over recent years, but this is the first time its owners have come from the Middle East. The deal is not expected to impact on job numbers at the Dublin operation, which was originally Team Aer Lingus.
The three acquiring companies - Mubadala, DAE and Istithmar - are based either in Dubai or Abu Dhabi, both part of the United Arab Emirates. They will hold 90 per cent of SR Technics. Mubadala is an investment vehicle based in Abu Dhabi. It was set up in 2002 following the issuing of a royal decree by the Crown Prince of Abu Dhabi. It invests across a range of industries and establishes strategic holdings in existing companies. It will hold 40 per cent of the SR Technics stake.
DAE (or Dubai Aerospace Enterprise) forms international partnerships, mainly in the aerospace industry. It is developing an aerospace quarter or "cluster" in the Jebel Ali district of Dubai. It will hold 30 per cent of SR Technics stake.
The third company involved is Istithmar, which describes itself as an "alternative investment house". Set up in 2003, it invests in hedge funds, listed equities and alternative investment projects. Its portfolio of investments is worth €1.8 billion. It will hold 30 per cent of the stake.
These three companies are buying SR Technics from 3i, the private equity group and Star Capital, a specialist investment fund.
Declan O'Shea, chief executive of SR Technics Ireland, said the announcement was good news for the whole company and that the new owners would get involved in a strategic way in the business. He said the new owners were committed to growing SR Technics.
He said while margins were under pressure in the aircraft maintenance sector, SR Technics Dublin had a large and varied client base, including Virgin Atlantic, Aer Lingus, SAS and Futura. He said the industry globally was worth about $38 billion (€29.8 billion), with SR Technics in a strong position in Europe, Asia and the Middle East.
The management of SR Technics is likely to remain the same, according to a statement released yesterday in Zürich. Frank Turner, chairman of the company, said the new owners had "considerable financial means" and "excellent contacts" which made the transaction appealing.
The transaction still has to clear regulatory hurdles, but the statement said the deal should be finalised within two months.
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