Team ITP Aero is flying strong with Bain at the helm and Indra as a partner

ITP Aero is already flying stable and secure in its new phase with private equity firm Bain Capital as the owner, having fitted all the pieces of its shareholder puzzle with the recent entry of Indra completing its capital.

Since Rolls-Royce sold the Basque airline to the US fund for $1,700m almost two years ago, the path to forming a Spanish industrial consortium that would secure the company’s roots because of its strategic nature in defense has not been easy. So the consortium Bain retained 30% of ITP.

entrance Indra by 9.5% In the capital of the $175 million global standard for aerospace and industrial engines – which was confirmed a few weeks ago – it completes the aforementioned ratio. He was expected to join (There was a previous attempt to buy a Rolls-Royce), but it wasn’t easy to implement.

In fact, the technology company experienced a Radical restructuring of its board Management to be able to implement it, as a fundamental step for the consolidation of the defense and security industrial ecosystem in Spain and a coordinated selection of future European investments and projects.

With the support of the Basque government

extras Saba and GB Capital Hence, the Urutia family, was the first to rise. Gipuzkoan in the sector operated by Aperribay, which specializes in transport and mobility technology for military vehicles, has positioned itself in the capital of Indra at the end of 2021 to have weight on its board.

Almost a year later (October 2022) the plane landed Basque government in ITP Aero, with 6%, Through IVF (Basque Institute of Finance). By merging Indra and IVF, Bain is complying with its obligations to the Spanish and Basque governments with regard to governance, Location in Euskadi and employment preservationEnhancing industrial and technological capabilities and research and development capabilities.

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Indra is already cooperating with ITP Aero in FCAS programIt is developing the European Future Air Combat System and also leads the sensor pillar globally and co-leads the two transverse pillars as well as the combat cloud pillar command in Spain.

For its part, the Basque Country is driving the NGF (Next Generation Fighter) engine at the national level. Similarly, the two companies were recently awarded a €40 million contract to provide integrated support for the Air Force’s weapons systems engineering and maintenance. Air Force and Aerospace aircraft.

growth in defence

ITP Aero, one of the world’s leading manufacturers of aviation engine components, owns a large number Customers of motorists in the United States And at the (OEM) level, with investments of more than 100 million euros over the next five years.

The Basque airline is headquartered in Zamudio (Vizcaya) and has more than 4,700 employees in Spain, the United Kingdom, Mexico, Malta and India. Since signing the acquisition deal by Bain Capital in 2021, the company has experienced experience Significant growth due to strong demand in the civilian and defense markets.

Thus, it recorded revenues of 1.047 million euros in 2022. 14% more than in 2021with an EBIT of 104 million, compared to 40 million in 2021.

The main reasons for these positive numbers are the recovery in commercial aviation, and the business mix of ITP Aero and Perform defensive actionsDespite the adverse macroeconomic factors, according to the Basque company.

By 2023, ITP Aero predicts production growth 30% It added more than 900 new employees.

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research and development and sustainable aviation

During 2022, the group achieved a series of accomplishments, including major progress on the experimental Rolls-Royce UltraFan, signing the FCAS Phase 1B contract and participating in European R&D projects as part of the clean fly the EDFs (European Defense Funds); Including the use of SAF (Reducing Emissions Fuel) and hydrogen towards more sustainable aviation.

In terms of research and development, ITP Aero has allocated a total of 60 million in 2022. In February this year, Bain Capital announced its first investment as the majority shareholder of ITP and will allocate 34 million to encourage technological and industrial growth From the Basque manufacturer. Among the projects included in the plan, a research and development center will be established in the Bizkaia Technological Park (Zamudio), where there will be, dedicated to advanced manufacturing technologies, with investments of more than 20 million and 120 specialized positions. It will also allocate more than $10 million to expand the production capacities of its foundries in Barakaldo and Sestao.

According to Carlos Zola, General Manager of ITP Aero, “With the integration of Indra into the shareholding and the signing of the Technology Cooperation Framework Agreement, the group will continue its path of growth, driven by civil aviation recovery Airlines announce large requests to increase and renew their fleets, as well as strong demand in defense business. Investments and capacities will be increased.”




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