Canadian private equity firm Clairvest Group has sold its interest in MAG DS Corp (MAG Aerospace), a Fairfax, Virginia-based provider of operations, training and technical services and other specialty aviation enabling real-time situational awareness. No financial terms were disclosed for the deal, which saw MAG go to New Mountain Capital, a U.S. private equity firm. Clairvest, which acquired a minority stake in the company in 2013, said it realized cash proceeds equal to about US$110 million, representing 8.2 times invested capital. CEO Joe Fluet said Clairvest helped MAG grow “from a small, emerging company to a market leader in less than five years.”
Clairvest Completes Sale of Interest in MAG Aerospace
TORONTO, June 07, 2018 (GLOBE NEWSWIRE) — Clairvest Group Inc. (TSX:CVG) (“Clairvest”) today announced that it and limited partnerships controlled by it completed the sale of their shares of MAG DS Corp. (“MAG Aerospace”). Clairvest partnered with MAG Aerospace through a minority investment in 2013.
MAG Aerospace is a leader in providing and enabling real-time situational awareness to help its customers to make the world smaller and safer. MAG Aerospace delivers full-spectrum ISR Services (operations, training, and technical services) and other specialty aviation to federal, international, civilian, and commercial customers around the world.
At closing, Clairvest and its limited partnerships realized cash proceeds equal to approximately US$110 million representing 8.2 times invested capital over the more than 5-year investment period.
Since Clairvest partnered with management of MAG Aerospace in 2013, MAG Aerospace has embarked upon a successful growth strategy that materially increased revenue from roughly US$20 million to over US$300 million today. During this time, MAG Aerospace completed four acquisitions, though the majority of the growth was the result of the organic growth strategy developed by MAG’s CEO, Joe Fluet, and his deep and capable management team.
“We are very proud of our accomplishments to date and are equally excited by our continued growth prospects,” commented Joe Fluet, CEO of MAG Aerospace. “Our partnership with Clairvest was a critical milestone for our company, and Ken Rotman and his team at Clairvest have been ideal partners during MAG’s most challenging years. Clairvest was with us as we grew from a small, emerging company to a market leader in less than five years, a feat we could not have achieved without their help,” added Mr. Fluet.
“The value realized in this transaction is a result of the creativity, focus and flawless execution of the MAG management team led by Joe Fluet. That growth will surely continue under the continued direction of Joe and his team as MAG advances to its next stage of development,” noted Ken Rotman, CEO of Clairvest.
The sale has a positive impact on Clairvest’s book value per share of approximately $1.65 versus the carrying value at December 31, 2017.
William Blair acted as financial advisor to MAG in this transaction.
Clairvest Group Inc. is a private equity management firm that invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
About MAG Aerospace
MAG Aerospace, headquartered in Fairfax, Virginia, is a leader in providing and enabling real-time situational awareness to help its customers make the world smaller and safer. MAG delivers full spectrum ISR Services (operations, training, and technical services) and other specialty aviation to federal, international, civilian, and commercial customers around the world. MAG’s team of 1,000+ professionals operate 200+ manned and unmanned special mission aircraft ~100,000 flight hours annually on 6 continents in support of its customers’ missions. For more information on MAG Aerospace, please visit www.magaero.com.
Clairvest Contact Information
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753