From the Financial Times re. OAA
The following article may be of some interest to those who have applied to OAA. Overall ownership by a private equity firm, which includes other worldwide aviation training interests, may or may not have implications for the UK part of the group. The cyclical nature of airline fortunes and their future planning and requirements will always have an impact upon independently owned FTOs, wherever they may be located.
FT: buyers circle Oxford Aviation
The majority owner of Oxford Aviation Academy, one of the world’s largest pilot training and leasing providers, is considering a sale of the company after receiving several takeover approaches in the past few months.
UK buy-out group Star Capital Partners has asked Credit Suisse to explore a potential sale, two people close to the situation said.
It is set to decide by the end of the year whether to launch an auction for the group, which could be worth over £350m.
A number of airlines and airline service groups from China, the US and Europe have expressed interest in OAA.
All potential buyers are said to be particularly keen on the group’s business in Asia. In China, demand for pilot training and flight crew personnel is rising rapidly.
Star Capital has grown OAA since 2007 through an aggressive “buy and build” strategy in which the private equity owner acquired six companies in less than 24 months.
The group has its roots in a $275m merger of the Scandinavian SAS Flight Academy with GE Commercial Aviation Training, which is based in the UK and Hong Kong, almost five years ago.
It was rebranded Oxford Aviation Academy in the same year following another takeover. US industrial conglomerate General Electric has a stake of less than 20 per cent in the group.
OAA was hit badly by the rapid economic downturn three years ago and has since been restructured by its owners. The business has rebounded strongly, and its earnings before interest tax, amortisation and depreciation are estimated to be in the region of £30m.
The company employs more than 600 people and operates 105 training aircraft around the world.
Star Capital, which declined to comment, has over €1bn in assets under management and specialises in capital-intensive businesses that are being outsourced by companies in the oil & gas, transport, utilities, telecoms and healthcare sectors.