The Carlyle Group on Tuesday said it has agreed to acquire StandardAero, a provider of maintenance and repair services for commercial and military aircraft engines, from Veritas Capital.
Terms of the deal were not disclosed, although the Wall Street Journal reported on Monday that Carlyle would pay about $5 billion, including debt. The transaction is expected to close in the first quarter of 2019.
Veritas acquired Arizona-based StandardAero in 2015 from Dubai Aerospace Enterprise Ltd. (DAE) in a deal valued at $2.1 billion. DAE leases aircraft and also provides maintenance, repair and overhaul (MRO) services for aircraft.
Veritas and Carlyle said that StandardAero has been enjoying strong growth.
“StandardAero is well positioned in an attractive market and we look forward to building on its strong foundation by helping it grow and meet evolving customer needs,” Adam Palmer, managing director and Global Head of Aerospace, Defense and Government Services at Carlyle, said in a statement.
StandardAero is one of the world’s largest independent MRO providers. After acquiring Vector Aerospace in November 2017 from Airbus Group, StandardAero had about $3 billion in sales and more than 6,000 employees worldwide.
Carlyle is tapping its $18.5 billion Carlyle Partners VII fund that focuses on buyout transactions in the U.S. to acquire StandardAero.
StandardAero’s lead financial adviser on the deal is Goldman Sachs and Morgan Stanley is also providing financial advice. Carlyle’s financial advisers are Credit Suisse, RBC Capital Markets and Macquarie Capital.