Updated on Monday, 27 September 2021 – 14:20
The North American fund completes the purchase of the aeronautical company in which JB Capital, SAPA, Sidenor and the Basque Government will also enter
Urkullu and counselor Tapia with Josep Piqu and ITP employees during the visit made by the Lehendakari in 2019 to the Zamudio factory.
The North American Investment Fund Bain Capital is already the owner of the aeronautical company ITP Aero after disbursing 1.7 billion euros in cash to Rolls Royce. The signing of the purchase has taken place in London and completes the first part of a complex financial and industrial operation that will allow ITP’s headquarters remain in the Basque Country, as claimed by the Basque Government. Bain, with 70% of the shares, leads a consortium of which they are also part JB Capital, SAPA Placencia and most likely Sidenor and the Basque Government.
Rolls-Royce announced on August 27, 2020 a divestment program to earn income of at least 2 billion pounds and placed ITP Aero on the market, the company it created together with the Basque engineer Sener in 1989 to manufacture engines for civil and military aircraft. One year later, the agreement signed this afternoon in London closes the multiple negotiations held with investment funds, industrial shareholders and the governments of Spain and Euskadi because ITP is a strategic supplier for the Spanish Royal Force and participates in major European aeronautical projects.
Rolls Royce has wanted to explicitly acknowledge its satisfaction with the talks held with the two governments that have participated directly in the negotiations, especially in recent weeks. A moment of huge tension As the date of September 27 approached, which had been set since the beginning of August as the date to close the purchase agreement and the definition of the consortium that with 30% of the capital plays a fundamental role in the relaunch of ITP, the maintenance of the employment and roots in the Basque Country. In addition, the British multinational has wanted to highlight ITP Aerep to continue “being a supplier and key strategic partner “ although it operates as an independent company.
Bain Capital will now continue negotiating the conditions of the consortium that will be integrated into the shareholding and management of ITP. For the moment, the presence of the Spanish investment fund JB Capital and SAPA Placencia as an industrial partner is confirmed. The incorporation of the arms company SAPA to replace Sener -as it was announced in August- multiplied doubts about Bain’s intentions to guarantee the continuity of the five plants and the almost 4,000 jobs that ITP currently has.
Bain has also ratified the continuity of CEO Carlos Alzola, the engineer from Vitoria who has led the process opened by Rolls to sell ITP, guaranteeing its continuity as one of the leading companies in the sector worldwide. “We will can further strengthen our position in the aeronautical sector, continue to offer high levels of innovation and service to our clients and expand our business to capture relevant growth opportunities “, Alzola highlighted after the signing.
Bain Capital has given itself until June 2022 to specify how both the Basque Government and the Basque company Sidenor will join the consortium. The Lehendakari Urkullu broke the discretion of the Basque Executive in this process to warn of his “concern” about what he denounced as a “drift” of the negotiations with Bain so that Euskadi participates in the capital stock with a significant purchase of shares. A public intervention that, hours later, led to the confirmation by Bain that the executive and fiscal headquarters of ITP Aero will remain in the Basque Country.
“We believe that there is significant potential for further accelerate ITP Aer’s growth trajectoryo and its investments in new technologies, “said Ivano Sessa, Managing Director, and Tobias Weidner, a Principal of Bain Capital Private Equity after the official signing of the purchase.
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