Private equity investors Blackstone and Clayton, Dubilier & Rice are considering making an offer to purchase Italian engine manufacturer Avio, according to Italian newspaper reports. In the meantime, current owner Carlyle Group, which owns a 70% stake, and Finmeccanica, which owns the remainder, are preparing for a flotation of Avio this year as part of Carlyle’s exit strategy. According to some analysts, a secondary buyout by other private equity funds is a less likely scenario. However, this could allow for maximisation of the company’s value in the stock market, they say. Avio is forecasting an increase in sales on the back of growing levels of work in the civil engine market: sales are expected to rise 2% from 2004’s level of €1.2 billion.
Source: Flight International