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Friday, 29.03.2024, 09:54
Baltcap selling Magnetic MRO to Hangxin for EUR 43 mln
The indicative closing time is at the end of March, after all regulatory
requirements and other closing conditions have been fulfilled, Baltcap said in a press release on January
3rd.
"Magnetic MRO management has
been actively looking for opportunities to expand into Asia, the highest growth
market in aviation," said the CEO of Magnetic
MRO, Risto Maeots. "Hangxin's location and service portfolio
is complementary to Magnetic MRO,
creating substantial synergies and new business opportunities. For the
management Hangxin is a perfect match
and we are thrilled to start working with their highly professional and
energetic team."
Kristjan Kalda, chairman of the supervisory board of Magnetic MRO and partner at Baltcap,
said that during Baltcap's ownership Magnetic MRO has grown from a small
regional player to a profitable global company.
"This is the largest exit transaction in Baltcap's history and proves our ambition to create highly
competitive Baltic companies. I would like to thank the fantastic team at
Magnetic, this strategic move is definitely a huge leap for the company,"
Kalda said.
"We are very pleased to welcome Magnetic
MRO to the Hangxin team. Magnetic MRO and their team have
developed a high-quality, reliable, customer-focused MRO business," said Lv Haibo, vice president of Hangxin. "We fully support the
existing strategy and executive management team, and will support Magnetic MRO's focus on continuing to
deliver value to their existing customers as well as expanding global MRO
presence."
The sellers were advised by Superia
Corporate Finance, Seabury Securities and law firm COBALT.
Magnetic MRO is an European Aviation Safety Agency (EASA) and Federal Aviation
Administration (FAA) certified total technical care and asset management
organization offering integrated MRO services. In 2017, Magnetic MRO received Company of the Year and Exporter of the Year
awards in Estonia.
Based in Guangzhou, Guangdong Province of China, Guangzhou Hangxin Aviation Technology is a
privately-owned company providing aircraft component maintenance services. Hangxin services components for over 20
aircraft types and serves over 50 airlines in Asia, Middle East, Europe and
North America. Hangxin is listed on
Shenzhen Stock Exchange and has a market capitalization over 700 million euros.
The management controls 46% of the shareholder votes and, along with employees,
61%.
BNS reported in October that Baltcap
has put its majority holding in Magnetic
MRO up for sale. The fair valuation of the company was then estimated to be
in the region of 50 million euros.