Rubicon sells Farsound Aviation to AGIC for £115m

Kenny Wastell
15 July 2019

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Rubicon Partners has sold aviation-focused supply chain management company Farsound Aviation to AGIC Capital for an enterprise value of ТЃ115m, bringing to an end an eight-year holding period.

Under the vendor's tenure, Farsound undertook an international expansion strategy and now has operations across Asia, the Middle East, Europe and North America. The group will continue to pursue international expansion under AGIC, with a particular focus on the Asian market.

Unquote sister publication Mergermarket recently reported that the company was being marketed based on run rate EBITDA of £11.4m.

Farsound's parent group RG Industries, which also incorporates XCel Aerospace, Goodridge and Ring Automotive, generated an operating profit of £6.4m in 2017, according to publicly available documents.

BlackRock, HSBC and Investec provided a debt package to support the deal.

Previous funding
Rubicon acquired Farsound from its founding family owners in 2011.

Company
Founded in 1986 and headquartered in Romford, Essex, Farsound provides supply chain management services related to engine parts for the aeronautical engineering and manufacturing sector. It has a network of around 300 suppliers and 120 customers.

People
AGIC Capital – Sam Breuning (partner).
Farsound Aviation – Kevin Sargent (executive chairperson).

Advisers
Vendor – Houlihan Lokey (M&A); Marlborough Partners (debt advisory); Proskauer Rose (legal); KPMG (financial due diligence); Roland Berger (commercial due diligence); PwC (tax); Aon (insurance due diligence).
Acquirer – PwC (financial due diligence); EY Parthenon (commercial due diligence); Renaissance Advisors (commercial due diligence); KPMG (tax, structuring); Jones Day (legal); JCRA (currency due diligence); Arthur J Gallagher (insurance due diligence).