Helicopter emergency transport services firm Avincis have invited banks to pitch for an initial public offering at the London Stock Exchange that could value the firm at up to 2 billion pounds including debt, MF-Milano Finanza writes today, confirming a take by Reuters. Avincis group has been built by Italian private equity firm Investindustrial since 2005, together with KKR since 2010, acquiring Italian companies Elilario, Elidolomiti and Helitalia; the Spanish company Inaer, the British Bond and finally Australian Helicopters and Norsk Helikopterservice. Investindustrial now controls the group with a 50,1% stake, while KKR owns the 49,9%.
Last November engineering group Babcock International was in exclusive talks with Avincis inorder to buy a minority stake valuing the group around 1.5 billion pounds (including 500 million debt) but the deal didn’t go ahead. Word is that KKR wouldn’t like to be diluted too much.
Andrea Bonomi’s Investindustrial bought control of Elilario in 2005 when the enterprise value was 205 million euro. In Spring 2010 KKR bought its stake in Inaer Group valuing the group 700 million euro, i.e. 9.3x 2009 ebitda. Inaer Group closed 2010 with 338 million euro of revenues from 302 millions in 2009 and with a 104 million euro ebitda from 79 millions in 2009.
Today Avincis group runs a fleet of 370 helicopters and planes and in 2012 had a 575 million euro revenue, with a 140 million euro ebitda and 97 millions ebit, thanks to 188,000 passengers, 126,000 flight hours and 36,000 missions completed.
Avincis has been investing big money in new aircrafts also thanks to financing from capital markets. Last January it tapped the market for 60 million pounds more of the 200 million pound bond it issued in May 2013 by its veichle Bond Mission Critical Services plc. The bond maturing on May 2019 has a call option next May, pays a floating rate coupon (3 months euribor plus 575bp) and is rated B2 by Moody’s and B by Standard&Poor’s. Ratings are higher than those (B3/B-) assigned to Inaer Aviation Finance 470 million euro bond issued in 2010 maturing in 2017.
Last issues are to finance new investments in 100 helicopters. Of those around 25 are inteded to be used for operations in Italy. Inaer Aviation Italia spa runs a fleet of 40 helicopter and manages 19 Canadair working on 38 operational basis in Italy with more than 600 employees.
