Published on July 17th, 2016 | by Jim Lee0
HNA Aviation to acquire majority stake in SR Technics
In a statement on 16th July, SR Technics announced that sole shareholder Mubadala, the Abu Dhabi investment and development company, has agreed to sell an 80% stake in the company to HNA Aviation, a global enterprise group based in Haikou, China. SR Technics is a world leading MRO service provider for the civil aviation sector. It will remain a standalone business within HNA Aviation’s portfolio of aviation business. Mubadala, a shareholder since 2006, will retain a 20% stake in the company.
SR Technics will continue to focus on delivering high quality integrated MRO solutions for aircraft, components and engines, as well as building long-term partnerships with a diversified global customer base that includes flagship and low-cost carriers, aircraft leasing companies and original equipment manufacturers.
Mubadala was established by and is owned by the Government of Abu Dhabi. The company’s strategy is built on the creation of partnerships and on long-term, capital-intensive investments that deliver strong financial returns and tangible social benefits for the Emirate of Abu Dhabi and that contribute to the growth and diversification of its economy. As such it brings together and manages a multi-billion dollar portfolio of local, regional and international investments and partners with leading global organizations to operate businesses across a wide range of industry sectors. These include aerospace, semiconductors, metals and mining, oil and gas, renewables, information and communications technology, healthcare, real estate and infrastructure, and services.
Homaid Al Shimmari, CEO of Aerospace and Engineering Services, Mubadala, said: “As a majority shareholder in SR Technics for over six years we are pleased to have found an ideal partner in HNA Aviation to continue the development of what is now one of the world’s leading MRO service providers of aircraft, component and engine services. We remain fully convinced of the long-term potential of SR Technics, and will remain actively involved through our stake and our representation on the board.”
Jeremy Remacha, interim CEO of SR Technics said: “We are pleased to welcome HNA Aviation as our majority shareholder at a time when we are focused on expanding our global presence. In addition to continuing to serve our existing customers, including our growing support of the Etihad Airline Group, further expansion into the fast-growing Asia Pacific market is a priority for SR Technics and HNA will support this through their growing network of regional and global businesses. We are also pleased to retain the support of Mubadala who has been critical in our development to date.”
Chen Wenli, Vice Chairman of HNA Group, said “HNA fully supports the existing long-term strategy and executive management team, and will be a reliable partner to support SR Technics’ focus on continuing to deliver value to its existing customers, and expanding its global MRO business.”
The transaction remains subject to anti-trust and regulatory approvals.
SR Technics recently extended its cooperation with easyJet in Malta
Earlier on 23rd June, SR Technics had announced that it had signed a five year extension on its maintenance cooperation agreement in Malta, with easyJet. The contract will commence October 2016, and SR Technics will perform base and heavy maintenance along with cabin retrofits for easyJet’s narrow-body aircraft in Malta. In parallel, SR Technics will perform a stand-alone line of cabin retrofits over a two-year period.
SR Technics opened its facility in Malta six years ago following a landmark contract with the carrier in late 2009. The latest contract extension reinforces the strategic partnership between the two companies, ensuring operational quality and cost effectiveness on a long-term basis.
SR Technics presently operates a two-bay hangar at Malta International Airport delivering the premium MRO services that it is renowned for worldwide. The company presently employs 180 people and will expand into a three-bay facility, increasing its total number of employees in the coming months.
With its head office at Zurich Airport, SR Technics provides its services to about 500 airline customers through an extensive network of international operations and sales offices in Europe, America, Asia and the Middle East.
About the HNA Group
The HNA Group was founded in 1993 and over the past two decades, it grew and prospered, as China opened up and reformed its economy. It developed from a local aviation transportation operator, to a major conglomerate, encompassing core divisions of aviation, holdings, capital, tourism and logistics, HNA Group’s business has expanded from Hainan Island across the globe and it has emerged as one of the Top 4 in China’s aviation industry, ranking the 99th in China Top 500 Enterprises. It has nearly 180,000 employees worldwide, with a fleet of over 820 aircraft. These serve nearly 700 domestic and international routes, fly to over 200 cities, and have served 77.4 million passengers annually. It operates and manages Hainan Airlines, Tianjin Airlines, Deer Jet, Lucky Air, Capital Airlines, West Air, Fuzhou Airlines, Urumqi Air, Beibu Gulf Airlines, Yangtze River Airlines, Guilin Airlines, My CARGO, Africa World Airlines, and Aigle Azur.
Last February, the HNA Group closed its acquisition of the Swissport Group, also based in Zurich, from PAI Partners SAS (‘PAI Partners’). However, Swissport remains a stand-alone business within HNA Group, where it continues to deliver the highest quality ground handling and cargo services to its airline customers across the globe. With a workforce of around 61,000 personnel, Swissport is active at more than 290 stations in 48 countries across five continents, including Ireland, where Swissport Ireland Ltd., has been operating at Dublin Airport since its takeover of Servisair in 2013. They in turn had operated at Dublin Airport, from 1995.