Cinven's Avio mulls flotation

Kenny Wastell
14 August 2015

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Cinven-backed Avio Spazio, an Italian aerospace business, is considering a flotation on the Milan stock exchange, according to reports.

The company's private equity owners are looking for the appropriate banks to oversee the IPO, sources told Reuters.

A source close to the situation told unquote" a flotation was just one of a number of possible exit routes for the company. Cinven declined to comment on the speculation.

The rumours come more than two years after the GP sold the aviation business unit of Avio to General Electric for €3.3bn. The division comprised all activities relating to the design, manufacturing and servicing components for commercial and military jet engines. The space propulsion unit remained under the ownership of the BCV Investments newco following the deal.

Cinven had considered a public offering prior to the 2013 trade sale, but rejected the possibility due to market volatility. The partial divestment generated a return of 2x the GP's original investment, according to reports at the time.

Cinven originally purchased an 81% stake in Avio in a €2.57bn SBO from Carlyle Group and Italian state-owned defence group Finmeccanica in 2006. Finmeccanica's 30% stake was sold for €430m, but the group bought back a 15% shareholding for a reported €150m.