GED merges Servitec with its subsidiary AIRE to create the leading independent aeronautical maintenance supplier in Spain

GED Capital announces the merger of Servitec Mantenimiento Aeronáutico, S.A. ("Servitec") with its investee Aircraft Interior Refurbishment España, S.L. ("AIRE"), a company acquired in 2019 specialized in the repair, modification, and maintenance of aircraft cabin interiors.

Servitec, founded in 2009, is a company specialized in line maintenance services, as well as preservation and dismantling of wide-body and narrow-body aircraft (known in the industry as "MRO" services). The company currently has 60 employees and offers its services through 4 permanent bases in Madrid, Barcelona, Lérida and Zaragoza and 17 temporary bases that it opens depending on its customers' needs.

Servitec's core business, line maintenance, is essential for airlines and comprises routine assistance during aircraft operation, follow-ups, recurrent scheduled overhauls and component changes (engines among others), allowing aircraft to be kept in service after short or medium duration stoppages. These overhauls and repairs (daily, weekly or periodic) are mainly provided at Servitec's fixed bases, but also at the temporary bases that Servitec can open at any airport in the world.

After the integration of Servitec, the group is configured as one of the leading independent maintenance providers in Spain, with a comprehensive range of services for both airlines and aircraft owners. The transaction is expected to generate commercial synergies and support AIRE's revenue diversification strategy, which has been key to maintain the company's activity during the pandemic years.

This operation coincides with a period of recovery and optimism within the aviation industry. According to AENA data, passenger traffic at domestic airports recovered in August to pre-pandemic levels and the industry's historical growth path is expected to recover. Furthermore, the new investment is in addition to another one made by GED in July 2021, when Air Clean Textil, S.L. ("AirClean Textil"), AIRE's reference supplier for textile manufacturing and cleaning.

Promoting new areas of operations

Servitec has shown continuous growth over the last few years –even during the pandemic– thanks to the diversification of its operations. In this sense, the company has been present and works mainly in segments of activity resilient to the situation, such as the cargo business at Zaragoza airport or the preservation and parking of aircraft at Lérida airport.

Since the acquisition of a majority stake in AIRE by GED in 2019, the company's strategy has been aimed at boosting new business lines complementary to the company's traditional interior maintenance activity, a strategy that has allowed AIRE to reach pre-covid activity levels. Among the most outstanding actions would be the increase of certifications and capabilities in the "DOA" engineering area, the start up of new repair shops for components and the modification of passenger aircrafts to cargo transport. Currently, and with the latest mergers and acquisitions, the group will have more than 200 employees.

Jorge Juliani, GED partner, stated: "The integration of Servitec with AIRE gives rise to one of the main independent aeronautical maintenance providers in Spain, an objective pursued since the beginning of the project and delayed by the pandemic".

The general manager of AIRE, Juan Antonio Carrasco, said: "We see Servitec as an ideal partner for AIRE, in order to continue strengthening the growth project that we have been promoting in recent years, at a time of recovery of the industry".

Miguel Martín, director of Servitec, added: "The integration is great news for Servitec because we share our business vision with AIRE, as well as the same spirit of customer service. This will allow us to focus on enhancing the capabilities of the two companies to offer a more comprehensive and comprehensive service to our customers.

Transaction advisors: Buyers: King&Wood Mallesons (Legal), Deloitte and Garrigues (Due Diligence).

About GED (www.gedcapital.com)

GED is an independent asset manager founded in 1996 that operates in the middlemarket segment. It currently has more than 1 billion euros under management through different Private Equity, Infrastructure and Venture Capital vehicles. GED has a pool of more than 50 domestic and foreign investors, including mainly pension funds, funds of funds, insurance companies, family offices and financial institutions.