Close Brothers Private Equity backs buy out of two Channel Islands businesses

CBPE, the leading mid-market private equity business of Close Brothers Group, announces that it has today backed the buy out of two Channel Islands based Aviation businesses: Aurigny Air Services Ltd (“Aurigny”) and Anglo Normandy Aero Engineering Ltd (“Anglo”) from Exxtor Group (“Exxtor”).

Aurigny, based in Guernsey, operates the inter-island air transport service in the Channel Islands. Anglo is the principal aero-engineering facility on the islands.

Aurigny, founded in 1968, operates a fleet of 8 Trislander aircraft and one Shorts 360 and has recently been expanding its fleet of SAAB 340s to service its growing off-island business to Stansted, Manchester and Schipol (Amsterdam).

Anglo, which employs 75 staff, and operates from hangers totalling 30,000 square feet, has extensive experience enabling it to service a wide range of aircraft including private and corporate turboprops, commercial passenger aircraft such as Trislanders, Shorts 360, ATR 42 and Dash 7.

Both Aurigny and Anglo are well-placed to profit from the recent buoyant market seen by regional airlines, enjoying a strong position in inter-island routes and the maintenance of the regional aircraft that fly them. Already profitable and cash generative, this deal will position both businesses to capitalise upon current market opportunities.

Richard Lott, of CBPE, commented on the transaction:

“This is a perfect investment opportunity in a sector in which we specialise. We are backing a buy-out by a local team who have tremendous experience in these businesses. We are particularly delighted to have completed our first deal in the Channel Islands which we see as a location which provides some tremendously exciting investment opportunities which can only be good for the local economy and good for the Channel Islands.”