Stirling Square Capital Partners backs buyout of Microtecnica
Stirling Square Capital Partners ["Stirling Square"], the pan-European private equity firm, today announces the buyout of Microtecnica ["the Company"], the flight critical aerospace component and sub-system manufacturer, from Hamilton Sundstrand, a subsidiary of United Technologies Corp. [NYSE: UTX] for an undisclosed amount.
Established in Northern Italy as a family business, Microtecnica designs and manufactures a range of flight critical aerospace components and sub-systems, primarily involved in flight actuation (the movement of flaps and other control surfaces), where it is a technology leader. Microtecnica operates three sites in Northern Italy and employs 686 people. In 2007, the Company generated sales of €124m.
Microtecnica has a well balanced portfolio of civilian and military programmes (50:50 split) and is present on fixed-wing, rotary aircraft and other platforms including spacecraft and missiles. Microtecnica supplies to a highly diversified customer base, including Hamilton Sundstrand, Avio, Alenia, Bombardier, Airbus and AugustaWestland.
Stirling Square will support the existing management team led by CEO Alan Bean in consolidating Microtecnica’s relationships with Italian and European defence contractors and continuing to drive further growth beyond Europe.
Microtecnica is highly representative of Stirling Square’s core investment strategy which is to target companies with unique capabilities and long term defensible market positions that offer potential for further operational improvement and growth. Stirling Square intends to invest in further developing Microtecnica’s core technology and in supporting international growth.
The acquisition follows Stirling Square’s string of successful pan-European, complex mid-market transactions, including the investment and subsequent sale of Global Design Technologies (also an aerospace company) in May 2007 for $343m, the sale of Schoeller Arca Systems for €428m in July 2007. The sale of GDT was named ’France and Benelux Deal of the Year’ at the EVCA Private Equity Awards held in Barcelona in December 2007.
The transaction is Stirling Square’s third investment in 2008 following the acquisitions of Sicurglobal, the largest player in the Italian security service market, in May 2008 and Jeckerson, the global premium leisurewear brand, in June 2008.
Martin Calderbank, a partner at Stirling Square, said:
"This is a classic investment for Stirling Square and plays to our core strengths of backing first rate management teams who are committed to transformative operational improvement. It is a privilege to be backing Alan Bean, an excellent manager we have known for a long time. Stirling Square is committed to helping the company continue its expansion beyond Europe and we look forward to being a part of Microtecnica’s continued success".
Stefano Bonfiglio, a partner at Stirling Square, added:
"Microtecnica is a leading company in its specialist market which is well placed to benefit from international growth opportunities. The company has an impressive focus on key relationships with defence and aerospace manufacturers - an essential feature of long-term success in the aerospace component sector. We have been particularly impressed by the quality of Microtecnica’s management and have great confidence in them. We’re excited about making our own contribution to this success story."
Alan Bean, Managing Director of Microtecnica, said:
"Microtecnica has become a leading supplier of Actuation and Environmental Control Systems as a part of Hamilton Sundstrand. This announcement marks the beginning of another exciting chapter in the history of Microtecnica. Stirling Square is hugely experienced in working with companies to move them on to the next stage of growth and has experience in our sector. We look forward to an exciting future as an independent company and market leader."
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Notes to Editors:
For further information contact:
Fergus Wheeler or Nigel O’Connor, Financial Dynamics
Tel: + (44) 20 7269 7259 / + (44) 20 7269 7105
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Stirling Square Capital Partners
Stirling Square Capital Partners is one of Europe’s leading mid-market private equity investors. SSCP seeks to invest in firms characterised by proven business models, market leadership, high cross-border development potential and talented management teams. SSCP targets European transactions between €50m and €500m from a wide spectrum of industries and specialises in complex, cross border deals. Since inception in September 2002, SSCP has led thirteen leveraged acquisitions across a variety of international markets. The partners at SSCP collectively bring over 80 years of private equity experience. www.stirlingsquare.com
With 2007 revenues of $5.6 billion, Hamilton Sundstrand employs approximately 19,000 people worldwide and is headquartered in Windsor Locks, Conn. Among the world’s largest suppliers of technologically advanced aerospace and industrial products, the company designs, manufactures and services aerospace systems and provides integrated system solutions for commercial, regional, corporate and military aircraft. It also is a major supplier for international space programs.
United Technologies, based in Hartford, Conn., is a diversified company that provides high-technology products and services to the aerospace and building industries.