Permira acquires majority stake in HK-based aircraft parts distributor Topcast

Photo: Bloomberg

Global investment firm Permira on Wednesday announced that it will acquire a majority stake in Hong Kong-headquartered aircraft parts distributor, Topcast Aviation Supplies, from its founders, according to a press statement.

The acquisition is being conducted through a company backed by the Permira Funds, it added.

Following the deal, the founders and current management team including managing director Thomas Hung and director of marketing & sales Calvin Li will remain shareholders and continue to play an important role in the company.

HSBC was the financial advisor for Permira while RBC Capital Markets advised Topcast Aviation on this deal.

Founded in 1991, Topcast Aviation provides parts for maintenance and repair of aircraft across the Asia Pacific region. Topcast Aviation has 19 offices across Asia, America, and the UK, with its largest market in Greater China.

Topcast provides parts for maintenance and repair of aircraft, benefiting from growth in air travel and the gradual ageing of a relatively young Asia-based airline fleet. Demand for aftermarket aircraft parts and services driven by air travel is expected to grow at more than 10% CAGR in the Asia Pacific over the next 10 years, the statement noted.

The Permira funds have been operating in Asia for more than a decade with offices in Tokyo, Hong Kong, Seoul and Shanghai. During that period, over $3.6 billion of capital has been deployed into major investments in the region including ABS, Arysta LifeScience, Galaxy Entertainment, Grobest, I-MED, John Masters Organics, Sushiro and Tricor.

Permira makes majority control as well as strategic minority investments in five key sectors namely consumer, technology, industrial, tech and services, healthcare and financial services.