Bridgepoint Development Capital IV (BDC IV), a fund focused on investing in mid-market growth businesses, has placed a majority investment in SK AeroSafety Group, the global market leader in aviation safety component MRO.

As part of the transaction, Levine Leichtman Capital Partners (LLCP), a Los Angeles-based private equity firm, will sell its stake in SK AeroSafety to Bridgepoint. Financial terms of the transaction have not been disclosed.

SK AeroSafety was established in 2012 and provides outsourced repair and maintenance services for critical flight safety products such as rafts, slides, oxygen cylinders, emergency beacons and fire extinguishers. The company employs more than 340 people worldwide and operates from 14 locations across North America, Europe, the Middle East and Asia.

Bridgepoint estimates the global MRO market for aviation safety components is valued at €1 billion and SK AeroSafety is well placed to capitalise on this large and growing market. The company has experience of achieving robust and resilient financial performance, delivering consistent, long-term revenue growth and industry-leading profit margins.

Chris Wright, chief executive at SK AeroSafety, said: “We are delighted to partner with David and the whole Bridgepoint team. SK AeroSafety and Bridgepoint share a common ambition to further grow and develop our aerospace support services across the world.

“Together, we will continue to invest in capability development and technology, broadening our global reach as we strive towards our vision to become the industry leader in the repair of aircraft safety components.”

David MacKenzie, partner at BDC, said: “Our team has been closely tracking SK AeroSafety’s trajectory for over four years. In that time, we have built a strong relationship with their highly experienced and dedicated management team.

“The company is uniquely positioned to benefit from the structural trends occurring in the sector including airline fleet growth and the transition from in-house maintenance to outsourced services as airlines look to manage costs. We are looking forward to leveraging our international network, expertise and resources to support SK AeroSafety’s next phase of growth and expansion.”

Josh Kaufman, head of Europe at LLCP, said: “The management team, led by Chris Wright, Ben te Beek and Robert Sims, has done a tremendous job growing SK into the leading global player within its specialised safety component niche.

“We are proud of the growth achieved and the expanded geographic footprint under our stewardship since partnering with management in 2019. SK AeroSafety is in a strong position for continued growth, and we wish the management team and their new partners all the best in the future.”