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Stirling Square Capital Partners sells Microtecnica to Goodrich

April 2011

Strategy of operational turnaround and increased investment has driven greater profitability

LONDON, 1 April, 2011 – Stirling Square Capital Partners (“Stirling Square”), the pan-European private equity firm, today announces that it has signed an agreement to sell Microtecnica S.r.l. (“Microtecnica” or the “Company”), the flight critical aerospace component and sub-system manufacturer, to Goodrich Corporation (NYSE:GR), a leading global supplier of systems and services to aerospace, defence and homeland security markets, subject to regulatory approvals.

Microtecnica is one of the world’s largest independent providers of highly engineered flight critical components to the global aerospace and defence market. The company designs and manufactures a range of components and sub-systems, primarily involved in flight actuation (the movement of flaps and other control surfaces), and thermal control systems for fixed wing and rotary aircraft.

Founded in Northern Italy in 1929, Microtecnica operates three facilities in Italy and an R&D office in the UK. At the time of the acquisition by Stirling Square, the management team, led by Chief Executive Alan Bean, was strengthened with a number key hires, including the appointment of Roberto Assereto as Chief Operating Officer and Roberto Hofmann as Chief Financial Officer.

Since Stirling Square acquired Microtecnica, annual capital expenditure was doubled and an extensive operational re-engineering programme was implemented, radically improving on-time delivery and positioning Microtecnica as a market leader for product quality and service levels. Annual R&D expenditure was also increased to levels well above that of prior years, resulting in a number of new programme wins, including the flap actuators for the next generation Mitsubishi Regional Jet and environmental control systems for the Saab Gripen Fighter Jet.

Under Stirling Square ownership Microtecnica revenue has grown 27% and EBITDA has trebled.

Stefano Bonfiglio, a Partner at Stirling Square, said: “We’re proud to have delivered impressive growth for Microtecnica, driven through investment in people, capex and R&D, to achieve the targeted levels of operational improvement. The company has grown to a position of strength over the past three years which is testament to the dedication of the management team and Stirling Square’s value creation expertise.

Microtecnica is highly representative of our core investment strategy which is to target companies with unique capabilities and long term defensible market positions that offer potential for transformational change. I’d like to thank everyone we’ve worked with at the business over the past few years and wish them the very best for future success.”

Alan Bean, CEO of Microtecnica, said: “Stirling Square has provided critical support, throughout the management buyout in 2008 and beyond. We have been able to invest in and change the company, resulting in improved operational performance, and positioning the company for success. I look forward to working with Goodrich to build on the achievements of the past three years.”


Advisers to Stirling Square Capital Partners:
Financial: UBS
Legal: Pavia e Ansaldo Studio Legale

Vendor Due Diligence Providers:
Legal: Pavia e Ansaldo Studio Legale
Environmental: ERM
Accounting: KPMG
Tax: Studio Colacicco


- ENDS -

Notes to Editors:

Microtecnica
Microtecnica is a diversified global provider of highly engineered innovative flight critical products to the aerospace and defence industries. www.microtecnica.net

Stirling Square Capital Partners
Stirling Square Capital Partners is one of Europe’s leading private equity firms, investing across Europe in mid-market companies with enterprise values between €50m and €500m. Since inception in September 2002, Stirling Square has made a total of fifteen mid-market acquisitions, investing in eleven portfolio companies and making four significant bolt-on acquisitions. Stirling Square has an established position in complex, cross border buy-out transactions. www.stirlingsquare.com

Goodrich
Goodrich Corporation, a Fortune 500 company, is a global supplier of systems and services to aerospace, defence and homeland security markets. With one of the most strategically diversified portfolios of products in the industry, Goodrich serves a global customer base with significant worldwide manufacturing and service facilities. www.goodrich.com.

For further information contact:

Alex Shepherd, Financial Dynamics

Tel: + (44) 20 7269 7120
Email: alex.shepherd@fd.com