Portfolio
Aviapartner
| Sector | Industrials |
|---|---|
| Investment type | Buyouts |
| Region | Benelux |
| Status | Current investment |
Nature of Business
Aviapartner is an airport ground handling services company that offers aircraft, passengers and cargo services on behalf of airlines and airport operators. Services provided range from check-in and ticketing, through to cargo storage and loading, to the cleaning and de-icing of planes prior to take-off.
Aviapartner currently operates at over 30 airports in five western European countries. The group works with leading airlines including Lufthansa and British Airways, in addition to low-cost carriers including EasyJet and Ryanair.
Investment Overview
3i’s involvement in Aviapartner came about when, in 2005, the majority shareholder and chief executive, Alex Verougstaete, decided to retire and find a new partner for the business. Aviapartner considered 3i to be the best partner to take the business forward thanks to our strong network and our experience in the aviation industry.
During our investment Aviapartner has acquired Aero Ground Services in Amsterdam to expand the European cargo handling network.
Aviapartner suffered heavily from the economic crisis in the period 2008 and 2009 as the passenger airline and air cargo markets collapsed. The need for a comprehensive business and debt restructuring materialised. €35 m of new money was raised from the shareholders and finance providers (€5.7m thereof provided by 3i and Funds), At the same time 3i brought in Messrs Laurent Levaux and Kris Geysels as new CEO and CFO. Both acted in an equivalent capacity in a prior 3i Investment in ABX LOGISTICS. 3i and Funds wrote off all their initial equity investment.
The restructuring saw a material reduction in the group’s financial debt. The operational restructuring plan led to an adjustment of headcount in line with lower levels of activity and a range of business improvement activities were launched.
In 2010 Aviapartner saw a material pick-up in volume with a corresponding recovery in profitability.
