PE-backed Sabena Technics to hit the auction block this year

Myriam Mariotte and Francesca Veronesi
20 February 2023

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Sabena Technics, a French maintenance, repair, and overhaul (MRO) services provider to civil and military aircraft operators, is pencilled in for a sale this year, two sources familiar with the situation told this news service.

No sellside advisor has been mandated yet and no beauty parade has been scheduled, one source said. Nonetheless, Lazard pitched for a mandate, the second source said. A sector advisor named BNP Paribas as another bank looking to secure the mandate.

Early talks are ongoing with potential bidders looking to form a view on the business, one of the sources said. A sale could start in the next six to eight months, but it could also possibly kick off in 2024, the same source added.

The company, owned by Sagard, Towerbrook and Bpifrance, would be marketed on around EUR 80m FY22 EBITDA, the two sources said.

When the company was sold in 2018, it was marketed off EUR 40m EBITDA, as reported.

Lazard declined to comment. BNP Paribas did not reply to a request for comment.

Private equity firms Wendel, Tikehau, Ardian, PAI Partners and Capza are currently looking into the company, one of the sources said.

Tikehau, Wendel, PAI Partners declined to comment. Capza and Ardian did not reply to a request for comment.

Any private equity firms whose ESG investment criteria strictly excludes defence-related businesses might struggle to acquire the company, according to one of the sources. The company offers services to civil aircraft as well as military aircraft and helicopters, according to its website.

However, one ESG-related commitment the company is focused on is ensuring its maintenance services contribute to the optimisation of fuel consumption, meaning aircraft generate a lower carbon footprint, according to both sources. The company is committed to several Corporate Social Responsibility (CSR) initiatives, according to its website.

Management has reinforced the company's equity story by securing new contracts, one of the sources said. For example, in January this year the firm announced that, in partnership with Thales, it secured a contract to upgrade the French Air and Space Force's fleet of CN-235 twin-turboprop tactical transport and logistics aircraft, used for tactical missions to drop paratroopers or equipment, as well as for public service operations.

The company's growth in recent years is also due to a strong buy-and-build strategy, the same source added.

Last September, Sabena Technics acquired French helicopter services provider Heli-Union for an undisclosed amount, as reported. In 2020, it bought Aeromecanic, a French provider of maintenance services for military aircraft and helicopters as well as a 50% stake in Belgium-based maintenance provider X-Air Services.

Based in Orly, in the Paris suburbs, Sabena Technics registered EUR 650m revenue in 2022, according to a press release.

Towerbrook and Sagard declined to comment. Bpifrance did not reply to a request for comment.