Carlyle nearing deal to buy StandardAero for more than $5 billion, say sources: Reuters

Private equity firm Carlyle Group LP (CG.O) is nearing a deal to acquire aviation services company StandardAero from Veritas Capital, another buyout firm, for more than $5 billion, including debt, people familiar with the matter said on Monday.

The deal, which could be announced as early as this week, would come three years after Veritas acquired StandardAero from Dubai Aerospace Enterprise Ltd (DAE) for $2.1 billion, including debt.

This will be the second round of ownership under Carlyle for the company. Carlyle first acquired StandardAero in 2004. In 2007, DAE simultaneously purchased StandardAero and Landmark Aviation, also an aircraft maintenance services company, from Carlyle in a transaction valued at $1.8 billion, including debt.

DAE sold Landmark Aviation to private equity firms GTCR LLC and Platform Partners a year later.
The sources cautioned that there was always a chance that negotiations between Carlyle and Veritas over the sale of StandardAero could end unsuccessfully, and asked not to be identified because the matter is confidential.

StandardAero and Veritas did not immediately respond to requests for comment, while Carlyle declined to comment.

The StandardAero deal would be Carlyle’s second major leveraged buyout this year. It acquired Akzo Nobel’s (AKZO.AS) chemicals business for 10.1 billion euros ($11.5 billion) in October.

StandardAero, headquartered in Scottsdale, Arizona, provides maintenance, repair and overhaul services to the commercial, business, military and general aviation industries.