SR Technics
- Realisation
- Location: Switzerland
- Sector: Transport & Logistics
- www.srtechnics.com
First investment
3i's Eurofund III invested €97m in December 2002 to enable the €425m management buyout of SR Technics from the administrators of SAirGroup (Swissair) and to significantly reposition the business.
Nature of business
A provider of integrated technical services and fleet management to the commercial aviation sector.
| Results to 31 December | 2005 (audited) CHFm |
|---|---|
| Sales | 1,362 |
| EBITDA | 146 |
Developments since 3i invested
The business was transformed from what was essentially the technical department of a flag-carrying airline into a world market-leader. SR Technics has expanded its customer and product base and its geographic reach, especially in Asia and the Middle East. It acquired FLS Aerospace, in a €140m transaction in 2004. New contracts reduced dependence on SWISS (formerly Swissair) from 45% to 14% of revenue.
In October 2006, SR Technics was sold to a UAE consortium for €1bn, generating a money multiple of 4.5 times for 3i and Eurofund III investors. During 3i's investment, sales grew from CHF 942m to approximately CHF 1.5bn and employment from 2,900 to 5,000.
| 3i Group plc’s return on investment as at 31 March |
2007 £m |
2006 £m |
|---|---|---|
| Cost | ||
| Equity and loan | n/a | 37 |
| Realised value | ||
| Equity and loan | 163 | n/a |
| Unrealised value | ||
| Equity and loan | n/a | 100 |
| Equity interest | 0% | 32% |
| Income in the year | 1 | 3 |