Fondo Italiano d’Investimento Sgr (Fii) is close to exiting the Novara-based Mecaer, active in the design and production of components, systems, and services for the aeronautical sector.
The private equity initiative controlled by Cdp is close to selling Mecaer Aviation Group (Mag), a multinational in the aeronautical sector headquartered in Borgomanero, in the province of Novara, specialized in integrated systems and services for helicopters and fixed-wing aircraft.
The operation, which values the company at around 350 million euros, comes after the entry of the fund led by CEO Davide Bertone and also participated by banks such as Intesa Sanpaolo, Unicredit, Banco Bpm, and Bper into the capital in 2021 and is part of the search for a new industrial and financial partner to support the growth of the aeronautical group.
The paradox is that the Italian Investment Fund, born to strengthen strategic industrial sectors, instead of promoting aggregations among aerospace and defense SMEs, is selling Mecaer to a French fund, comments today Gianni Dragoni in Fatto Quotidiano pointing out that “behind Pai Partners there would be the interest of the French Safran,” which aims to enter the Gcap program after previous acquisitions in our country. It was indeed in 2024 when Italy approved the purchase of the Italian company Microtecnica by the French defense company Safran with the promise to safeguard Italian national interests, after Palazzo Chigi exercised the golden power in November 2023.
All the details.
THE SALE TO THE FRENCH FUND
The Italian Investment Fund, established on the initiative of the Ministry of Economy and controlled 55% by Cassa Depositi e Prestiti, is preparing to sell Mecaer to the private equity fund Pai Partners. The agreement has already been reached and only the final formalization is missing, reports today il Fatto Quotidiano. The process is in its final stages coordinated by the advisor Lazard, while Pai Partners would be assisted by the consultant Bnp Paribas, reported Sole 24 Ore last week.
The operation marks the conclusion of the exploratory path started to identify a new equity partner. The fund led by Domenico Lombardi should still maintain a minority stake in the group.
WHAT IS MECAER AVIATION
As stated on the Fii website, “founded in 1992, Mecaer specializes in the design and production of advanced flight-critical aeronautical equipment systems, including flight controls, actuators, and landing systems, and in providing maintenance and cabin outfitting services mainly for helicopters and business jets, with a significant presence in North America.”
Mecaer was actually born as a spin-off of Agusta, then part of the defense and aerospace giant Finmeccanica, now Leonardo. Headquartered in Borgomanero (Novara), the company has seven production plants including those in Monteprandone (in the province of Ascoli Piceno) and Reggio Emilia, as well as in Canada and the United States, with about 950 employees.
WHAT IT DOES
The aeronautical company, currently led by Marco Acca, operates internationally in the development and production of advanced systems and technologies for helicopters, business jets, and general aviation. The activity is mainly divided into two divisions: the first, “Integrated Aircraft Systems,” deals with actuation, flight control, and landing systems; the second, “Aircraft Services,” focuses on cabin interiors and maintenance, repair, and mission customization services (Mro).
THE ENTRY OF THE FUND
As already mentioned, the Italian Investment Fund acquired control of Mecaer in 2021 together with the US fund Stellex Capital, through a capital increase of 100 million euros. To date, the two investors hold about 75.8% of the group through the vehicle Fly One spa, of which the sgr owns a large majority (67.31%) and the US private equity 32.69%, Bebeez reported last month Bebeez.
THE SHAREHOLDING STRUCTURE
The remaining capital belongs to SBI srl with 22.42%, participated by Polinvest srl, attributable to Lorenzo and Maria Elena Caporaletti (children of the former head since the launch of Mecaer Amadeo Caporaletti) and by Fn investment consulting srl for 1.8%. Bebeez also reports that “the second shareholder of SBI is AAM Advisory Asset Management srl, which owns 20% and is headed by Giovanna Pisciotti, Alessandra and Valerio Pasqua.”
ECONOMIC PERFORMANCE
Under the management of the new shareholders, Mecaer has recorded a progressive improvement in economic results. The financial statement as of September 30, 2024, shows revenues of 224 million euros, an increase of 26% compared to the 178 million achieved in the previous fiscal year, with an operating profit of 14.4 million and a net profit of 9.87 million, up 66%. The result confirms the group’s expansion trend which in 2021, the year of entry of the new shareholders, recorded revenues of 139 million and in the last three years has seen growth of over 60%.
THE INDUSTRIAL DEVELOPMENT PLAN
In recent years Mecaer Aviation Group has focused on significant business expansion, with the declared goal of reaching 250 million in revenue by the end of 2025.
The plan is structured on three main directions. The first concerns strengthening in North America, with the opening in 2025 of a new plant in Laval, Canada, which brings the total production capacity in the area to 12,000 square meters, also supported by a 7.5 million euro financing from Simest.
The second direction is the evolution of the core business, extending from activities related to helicopters towards fixed-wing aircraft, business jets, and drones. The third concerns acquisitions, including those of Elimetal Inc. and Euravia srl, included in the group’s growth path.
THE SALE DECIDED BY FII
However, in light of the positive numbers, the Italian Fund has started looking for a new equity partner for Mecaer. The sale would occur with a capital gain, on a valuation of about 350 million. And Fii should reinvest in minority.
According to rumors, on the table besides the offer from Pai Partners, there were also offers from two US conglomerates active in the aeronautical sector. The choice fell on the international private equity Pai Partners. However, the operation raises some questions.
Why is Fii, controlled by Cdp and born to support technological sectors, exiting this strategic company?
According to what was reported at the beginning of April by the Confindustria daily “the sale of the stake in Mecaer falls within the new course in the strategy of the Italian Investment Fund, which aims to realize exits to the benefit of the fund’s subscribers and, at the same time, to increase the speed of resource deployment, fundamental for the mission which is to be a market instrument for the industrial policy of Italian SMEs. In a recent interview with Sole 24 Ore, CEO Domenico Lombardi explained that ‘the Italian Investment Fund aims to be a market investor with a systemic vocation.’”
THE STRATEGY OF THE FRENCH SAFRAN?
Yet, according to Gianni Dragoni “the paradox is that Fii is a public vehicle and entered Mecaer through the ‘Italian Consolidation and Growth Fund,’ which should strengthen an industrial sector with important technologies. And instead of seeking aggregations with other aerospace and defense SMEs that need capital, the State sells the company to the French.”
“Behind Pai Partners there would be the interest of Safran, the giant that has already bought Microtecnica of Turin, despite a clumsy attempt by the government to block the operation with the golden power,” Dragoni continues in Fatto, adding that “The French goal would be to participate in the Gcap fighter jet program, which only companies from Great Britain, Japan, and Italy can access.”
In fact, the French Safran already participates in the program for the Franco-German-Spanish future air combat system Fcas, rival to Gcap. It is also true that despite Gcap, which is progressing rapidly, the Fcas project is on the brink of failure.
