Air Works India Engineering Ltd, an Indian maintenance repair overhaul (MRO) company, today said it has bought stake in Dubai-based Empire Aviation Group (EAG) for Rs 120 crore. The deal has been funded through a mix of internal accruals and structured debt finance from KKR & Co LP, a leading global investment firm with roots in private equity.
After the acquisition EAG, which offers aircraft sales, management, charter, finance and insurance, plans to launch its services in India in about eight weeks.
“EAG already has two clients in India. There is a huge opportunity in India and the company plans to invest $5 million (Rs 28 crore at Rs 55.93 to a dollar) in two years,” said Vivek N Gour, managing director, Air Works.
Closely-held Air Works India is India's largest provider of maintenance services for business aircraft since 1951 with operations at various airports across the country. Punj Lloyd owns stake in the company besides a Bangalore-based Menon family. Details of the family are not known.
Gour added EAG has a great business model, a very experienced management team and a strong reputation within the regional and international industry.
EAG would launch its services in Bangalore first and then move on to other cities.
“We will launch our services in Bangalore and will move to New Delhi and Mumbai.
This partnership with Air Works will also help us to broaden our business base and service offering in West Asia and India, and beyond,” Steve Hartley, co-founder and executive director of EAG.
At present, EAG has more than 100 staff and operates one of the region’s largest managed fleet of business jets, with 20 aircraft under management, operating out of Dubai International Airport.
