Three Hills-backed Magnaghi acquires Blair-HSM

Nicole Tovstiga
25 April 2018

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Three Hills Capital Partners has backed privately held Italian aerospace group Magnaghi Aerospace Group, providing capital to complete the acquisition of US-based landing gear manufacturer Blair-HSM.

The London-based direct lender is supporting Magnaghi through a tailored financing package comprising both debt and equity.

The majority of the debt capital was in the form of a bond, with the rest comprising a prefered or senior equity injection, Three Hills partner Michele Prencipe told Unquote.

When it came to clinching the deal, a critical element was the Magnaghi management team along with the firm's competitive position in the market, Prencipe adds. Three Hills is expecting to appoint two more directors and will be involved in pursuing Magnaghi's M&A strategy.

With the fresh capital from Three Hills, Magnaghi was able to acquire Blair-HSM, in addition to the company's management also investing in the transaction.

It plans on integrating the firm into the larger group in order to expand its presence in the US. Magnaghi also expects Blair to benefit from its technology and production operations across Italy and Brazil.

Company
Established in 1936 and headquartered in Naples, Magnaghi was founded as a provider of landing gear to the Italian air force.

Since then it has diversified, and manufactures landing gear, hydraulic components and actuators for the rotary- and fixed-wing markets globally, as well as composite aerostructure components. It also makes Sky Arrow, a carbon-fibre aircraft used in law enforcement, defence and agriculture.

Headquartered in Medford, New York, Blair-HSM is a manufacturer of landing gear and actuators, operating in a similar niche to Magnaghi.

People
Three Hills Capital Partners – Mauro Moretti (managing partner); Michele Prencipe (partner).
Magnaghi Aereospace Group – Paolo Graziano (CEO).

Advisers
Company – Dentons (legal); KPMG (financial due diligence).
Equity – Gianni Origoni Grippo Cappelli & Partners (legal); Alix Partners (commercial due diligence); KPMG (financial due diligence); PwC (tax); Clifford Chance (corporate finance).