The Council of Ministers has authorized Bain Capital’s investment in the Spanish company ITP Aero, by means of an agreement setting out the conditions for the special protection of industrial and defence interests of this operation. Since the start of discussions on the sale of the Rolls Royce shares, Bain Capital has expressed its commitment to a robust industrial project, which will help the ITP Aero Group become a global aeronautics and defence sector leader in Europe and globally. Bain Capital also offers guarantees of national and European interest programmes with regard to location, maintenance of employment and headquarters, exemption from non-EU export controls, contract compliance and the proper handling of sensitive information. In addition, the authorisation involves reserving up to 27.5% of the shares for the formation of a consortium of Spanish industrial companies and institutions, among which the Basque Government is expected to participate.
Ivano Sessa, a Managing Director and Co-Head of Europe Industrials at Bain Capital Private Equity, said: “We are delighted that the acquisition of ITP Aero has received authorisation from the Spanish government, thereby successfully completing the process of regulatory approvals. We are fully committed to supporting ITP Aero’s long-term stability and growth, and its crucial role in the Basque region and in Spain.”
“Our business plan is deeply aligned with ITP Aero’s management team, employees and government, and is predicated on enhancing the company’s technological and industrial capabilities as a leading independent aeronautics company. We look forward to the closing of the transaction,” added Tobias Weidner, a Principal at Bain Capital Private Equity.”
Carlos Alzola, CEO of ITP Aero, said: “For more than 30 years, ITP Aero has been a successful and market leading company in the aeronautical field. We are excited about our partnership with a Bain Capital led consortium, who have expressed a deep commitment to the Basque region, our team and to our continued growth. I would like to thank especially all ITP Aero employees for their support during the sale process period. We are looking forward to working with all stakeholders – customers, partners, Government – in this very exciting period of industry change
towards a more sustainable aviation, where ITP Aero will have a key role as a leader in Spain’s aeronautical propulsion sector”.
In September last year, Bain Capital signed an agreement with Rolls Royce to acquire ITP Aero. The acquisition was conditional on reaching agreement with the Spanish government, which had to authorise the operation as it was a foreign investment in a strategic company involved in projects critical to national defence. The agreement between Bain Capital and the Government of Spain marks the beginning of a new phase that guarantees the future and offers stability to ITP Aero. Bain Capital is aware that recent international developments highlight the need to ensure the autonomy of the European Union and its member states in certain strategic areas, particularly in the defence sector. Under Bain Capital’s leadership, the company expects to further accelerate its growth and expansion
of its industrial and technological capabilities.