Zurich-based SR Technics is a leading independent provider of technical services in the aircraft, component and engine areas. The deal means SR Technics will not go ahead with an initial public offering for the company that was planned for later this year.

SR Technics started out as the technical support unit of Switzerland's now-defunct national carrier, Swissair. Following Swissair's collapse in 2001, SR Technics had been owned by private-equity investors 3i (56 per cent) and Star Capital (20 per cent), SR Technics’ management (12 per cent) and other institutional investors. The transaction is still subject to regulatory approval and is expected to be finalised within two months.

Under the new owners, SR Technics will keep its current management and 5,000 employees in place, with Chief Executive Hans Lerch staying on. “This is a unique opportunity to accelerate our growth strategy supported by ambitious new owners with a strong strategic interest in our industry, excellent contacts within the fast-growing markets of the Middle East and Asia and a long-term commitment to our company and its customers,” Lerch said.

The company’s headquarters will continue to be at Zurich Airport. The new owners will hold a majority stake of more than 90 per cent of SR Technics; of this, Mubadala Development will own 40 per cent and both DAE and Istithmar will hold 30 per cent each. The remaining shares will be retained by the management of SR Technics. The Share Purchase Agreement was signed in Zurich yesterday.

“This investment is all about building SR Technics’ business. Our consortium wants to further grow the company based on its current strengths – including its highly-reputed brand name and its skilled and motivated workforce,” said Waleed Al Mokarrab Al Muhairi, Chief Operating Officer of Mubadala Development.

The full board’s composition will be announced after closing the deal. “The consortium identified SR Technics as one of the most dynamic and high-potential assets in the aerospace industry. Our consortium will retain SR Technics as an independent stand-alone business entity, which has been the key reason for its success in the past four years,” said David Jackson, CEO at Istithmar.