BBA Aviation has signed a $1.37bn agreement to sell OEM-licensed component provider Ontic to private equity company CVC Fund Vll.

Unanimously supported by its board, BBA Aviation said that the deal should return between $750m and $850m to shareholders.

The transaction will enable the company to enhance its Signature Flight Support business, which provides full-service flight and home base support, including refuelling, ground handling and MRO services.

BBA Aviation CEO Mark Johnstone said: “We are delighted that we have reached an agreement to sell our Ontic business to CVC Fund Vll for $1.37bn, delivering compelling value for BBA shareholders.

“Ontic was acquired by BBA in February 2006 for $67m and has grown successfully through the acquisition of licences, organic and inorganic growth, and a disciplined approach to investment.

“BBA shareholders will continue to benefit from Signature’s ability to outperform the B&GA market through the cycle, as well as Signature’s ability to take advantage of its significant opportunities for future growth.”

After purchasing Ontic, BBA expanded the unit through acquisitions of licences for aircraft components.

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Sales of the Ontic business unit, whose major customers include Boeing, Airbus and British Airways, accounted for 15% of the company’s overall underlying operating profit last year, reporting revenues of $216m last year.

CVC Capital Partners senior managing director James Mahoney said: “Ontic is a growing, highly resilient business and a leading player in what we believe to be a very attractive market.

“We see multiple opportunities to develop the business further and look forward to working closely with Ontic’s excellent management team to take the company to the next level.”

Expected to be completed in the last quarter of this year, the transaction is subject to shareholder approval and other regulatory consents.

Ontic provides FAA, CAAS, CAAC, TCCA, DCA, EASA Part 21 and 145 OEM support, including new and serviceable spares and repairs for more than 6,500 maturing and legacy aircraft parts.