CAV Aerospace snapped up by Jon Moulton's Better Capital

Private equity firm committed £40m for working capital and investment into the Consett manufacturer, and hinted at potential "bolt-on" acquisitions

Nick Clegg visits CAV Aerospace in Consett, County Durham
Nick Clegg visits CAV Aerospace in Consett, County Durham

Durham’s CAV Aerospace has been acquired by private equity firm Better Capital, the fund belonging to renowned investor Jon Moulton.

The Consett-based manufacturer, which also operates sites in Poland and Mexico, has been bought up by Better Capital’s BECAP12 Fund LP, known as the “2012 Fund”.

An initial £40m has been committed to the deal, which Better Capital said would provide working capital and investment for CAV’s future growth.

The investors also suggest there could be further “bolt-on acquisitions” in the future.

CAV Aerospace Consett
CAV Aerospace Consett

CAV is a specialist aerospace manufacturing business, which supplies complex metallic components and sub-assemblies to several major original equipment manufacturers including Airbus, Embraer and Gulfstream.

In 2013 the firm reached revenue of £74m and operated close to breakeven point.

A statement from Better Capital said: “Historically CAV has received a good level of investment; however, it will benefit significantly from strengthened operational support.

“CAV operates in the same sector as the 2009 Fund’s investment in Gardner Aerospace.

“For the avoidance of doubt, these two investments will be run independently from each other, specifically, the ownership of both entities is held by separate funds and the businesses will be managed by separate teams.”

Following the deal Better Capital said the 2012 Fund has £48m cash available for investment into other platform or follow-on investments.

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