ITPS snags $3.5 mln from BDC Capital


London, Ontario-based The International Test Pilots School has secured $3.5 million in funding. The investor was BDC Capital’s Growth & Transition Capital division. ITPS provides test flight training to pilots and engineers of approximately ten countries.

PRESS RELEASE

LONDON, Ontario, November 8, 2019—The International Test Pilots School (ITPS) of London, Ontario has recently launched two state-of-the-art upgrade projects to its fleet with the help of 3.5 million dollars in financing from BDC Capital’s Growth & Transition Capital division. ITPS is one of only eight institutions in the world, and the only one in Canada, to provide training to pilots and engineers who test new aircraft for civilian and military use. The company has been providing test flight training to pilots and engineers of approximately ten countries, and is counting on the new projects to help grow its international market share.

With BDC Capital’s financing, ITPS will be upgrading two of the 17 aircraft in its fleet with flight control and avionic systems representative of the latest technology. The company’s management is confident that these improvements will maintain ITPS’s status as the cost leader in its market and position it as a technology leader for the next ten years. The terms of BDC Capital’s non-dilutive mezzanine financing were tailored to the company’s historically strong cash flow and to its revenue forecasts, as well as to management’s preference for rapid repayment.

“The 5th generation Surrogate Training Aircraft (5STA) and Advanced Controls Evaluator (ACE) projects will provide two unique assets that will ensure ITPS stays at the forefront of technology for years to come,” declares Giorgio Clementi, President of ITPS. “We anticipate an excellent return on investment. BDC Capital’s confidence in ITPS after careful due diligence has provided a valuable validation of our business model and strategy.”

This transaction was led by Jeffrey Hill, Director, Growth & Transition Capital for Southwestern Ontario at BDC Capital. “Thanks to his reputation in the industry, Giorgio Clementi has been able to attract and retain a highly skilled group of trainers, and the senior executive team he has built, which includes two of his sons, is equally impressive,” says Hill. “These two upgrade projects, together with other recent initiatives, will give ITPS a strong strategic advantage that should lead the company to significant international growth.”

About International Test Pilots School
The International Test Pilot School (ITPS) is a school of flight testing, the only one in Canada and one of only eight fully accredited institutions worldwide. ITPS has graduated flight test professionals from 25 different countries to date. ITPS also provides flight test engineering consulting services in support of airplane and helicopter flight testing worldwide.

About BDC Capital
BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs. With more than $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions. Visit bdc.ca/capital.