StandardAero announced the launch of its initial public offering (IPO) process on Sept. 23, seeking to raise $1.1 billion at a valuation of up to $7.5 billion.
Backed by the private equity (PE) giant Carlyle Group and Singaporean sovereign wealth fund GIC, the aircraft engine maintenance specialist decided to go public in line with Carlyle’s preference. Carlyle had explored selling StandardAero but was seemingly underwhelmed with the bids it received. Carlyle believes StandardAero’s valuation will be higher in an IPO, according to Bloomberg News.
Earlier assessments of StandardAero’s value may have been overly optimistic. Bloomberg reported in July that bids by PE firms for the company could reach up to $10 billion, well above the high end for the forthcoming IPO.
Filings for the listing show that funds affiliated with Blackrock, Janus Henderson Group and Norway’s $1.8 trillion sovereign wealth fund have respectively signaled interest in buying shares of StandardAero at the IPO price.
StandardAero’s decision to go public comes less than a month after its acquisition of military MRO provider Aero Turbine from PE firm Gallant Capital for an undisclosed sum. Founded in 1978, California-based Aero Turbine has a customer portfolio that includes the U.S. Air Force, U.S. Navy, foreign militaries, Magellan Aerospace and Textron-owned ATAC. It is StandardAero’s 15th acquisition since 2015.
In the first half of the year, StandardAero posted an $8.6 million profit with sales of $2.6 billion, an improvement over its $12.6 million loss on $2.3 billion in revenue in the first half of 2023.
