SR Technics

3i led the €425 million MBO of Zurich based SR Technics ("SRT") in late 2002. SRT was originally the maintenance and engineering division of Swissair, and was put up for sale when its parent company went into administration. Despite a challenging market environment, 3i recognised significant potential for SRT's management to capitalise on its leading industry reputation and extend the customer base.

3i's local presence in Zurich, successful track record in the aviation sector, and its ability to source a highly experienced chairman, Frank Turner, were all key in securing this investment.

Post completion, 3i and management have pursued a buy-and-build programme, transforming SRT into the world-leading independent provider of integrated technical and fleet management services for commercial aircraft. This was achieved through the acquisition of its major competitor, FLS Aerospace, in a €140 million transaction in June 2004.

SRT subsequently refinanced the business with a US$325 million asset based debt facility in June 2005 and signed up easyJet in a US$1 billion, 10 year contract. 3i's long-standing relationship and credibility with easyJet was a contributing factor.

The company has also built up a significant presence in the high growth areas of Asia and the Middle East. It has recently signed a joint venture with Shanghai Airport and won contracts with China Eastern, Vietnam Airlines and signed a MOU for a five year, US$750 million total fleet management contract with Gulf Air, the national carrier of Bahrain and Oman.

With over 5,000 employees, SRT reported total sales of €850 million and EBITDA of €95 million in 2005 and has enjoyed a normalised organic annual turnover growth of 15% since the buyout - more than double the sector growth rate.