Bridgepoint acquires SK AeroSafety Group, a global leader in aviation safety component maintenance, repair and overhaul services

• SK AeroSafety enjoys a highly attractive market position, with longstanding, blue-chip customer relationships built on leading turnaround times and a superior reputation for high-quality service.
• The company has delivered impressive financial performance, achieving 10% revenue growth since 2019, despite the impact of Covid on the aviation industry.
• Bridgepoint will support SK AeroSafety’s next phase of growth, with a focus on further international expansion and diversifying their capabilities, organically and through M&A.

Bridgepoint has today announced that Bridgepoint Development Capital IV (“BDC” IV), a fund focused on investing in mid-market growth businesses, has agreed to make a majority investment in SK AeroSafety Group, the global market leader in aviation safety component maintenance, repair and overhaul services (“MRO”).

As part of the transaction, Levine Leichtman Capital Partners (“LLCP”), a Los Angeles-based private equity firm, will sell its stake in SK AeroSafety to Bridgepoint. Financial terms of the transaction were not disclosed.

Established in 2012, SK AeroSafety provides outsourced repair and maintenance services for critical flight safety products such as rafts, slides, oxygen cylinders, emergency beacons and fire extinguishers. The company operates from 14 locations across North America, Europe, the Middle East and Asia and employs more than 340 people worldwide.

Bridgepoint estimates the global MRO market for aviation safety components is valued at €1bn and SK AeroSafety is well placed to capitalise on this large and growing market. The company has a track record of achieving robust and resilient financial performance, delivering consistent, long-term revenue growth and industry-leading profit margins.

The partnership builds on Bridgepoint’s growing track record and expertise in the aerospace and safety-critical testing sectors.

Chris Wright, CEO at SK AeroSafety said:

“We are delighted to partner with David and the whole Bridgepoint team. SK AeroSafety and Bridgepoint share a common ambition to further grow and develop our aerospace support services across the world. Together, we will continue to invest in capability development and technology, broadening our global reach as we strive towards our vision to become the industry leader in the repair of aircraft safety components.”

David MacKenzie, Partner at BDC said:

„Our team has been closely tracking SK AeroSafety’s trajectory for over four years. In that time, we have built a strong relationship with their highly experienced and dedicated management team. The company is uniquely positioned to benefit from the structural trends occurring in the sector including airline fleet growth and the transition from in-house maintenance to outsourced services as airlines look to manage costs. We are looking forward to leveraging our international network, expertise and resources to support SK AeroSafety’s next phase of growth and expansion.“

Josh Kaufman, Head of Europe at LLCP said:

“The management team, led by Chris Wright, Ben te Beek and Robert Sims, has done a tremendous job growing SK into the leading global player within its specialised safety component niche. We are proud of the growth achieved and the expanded geographic footprint under our stewardship since partnering with management in 2019. SK AeroSafety is in a strong position for continued growth, and we wish the management team and their new partners all the best in the future.”

The transaction closed today on 20 July 2023. It marks the eleventh platform investment by BDC IV and its fifth in the UK.

The shareholders of SK AeroSafety Group were advised by Houlihan Lokey (Financial Adviser), Wilkie Farr & Gallagher (Legal Adviser), Roland Berger (Vendor Commercial Due Diligence), and KPMG (Vendor Financial and Tax Due Diligence).

Bridgepoint was advised by KPMG (Financial Adviser), Ropes and Gray (Legal Advisor), BDO (Financial and Tax Due Diligence), Victanis (Commercial Due Diligence), EY (Tax Structuring), ERM (ESG Due Diligence), Crosslake (Technology Due Diligence) and Marsh (Insurance Due Diligence).