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Jun 18 2012

Air Works India Buys Stake in Dubai's Empire Aviation Group for $22 Mln

Monday, Jun 18, 2012

   By Rakesh Sharma 

NEW DELHI--Air Works India Engineering Pvt. Ltd. said Monday it has purchased a strategic stake in Dubai-based Empire Aviation Group for 1.2 billion rupees ($22 million) as part of steps to expand its footprint in the Middle East and provide aircraft management services to customers in India.

Empire Aviation is an aircraft asset management company and provides private aviation services such as aircraft sales, aircraft management, charter, and aircraft finance and insurance.

Vivek Gour, managing director of Air Works, told a news conference that the transaction will be financed by taking senior secured debt from a consortium of four private-equity firms led by KKR & Co. LP.

Mr. Gour declined to disclose the size of the stake purchased in Empire Aviation .

Air Works offers aircraft maintenance, repair and overhaul services in India and aircraft paint and refinishing in the U.K.

Mr. Gour said also that Air Works expects to acquire within a year a company that provides maintenance, repair and overhaul services for aircraft engines.

He said a potential target has yet to be zeroed in but added that Air Works is looking at Australia, South Africa, the U.S. and U.K. for the planned acquisition.

Air Works may raise $35 million to $50 million for the acquisition, Mr. Gour added.

Write to Rakesh Sharma at rakesh.sharma@dowjones.com

(END) Dow Jones Newswires

18-06-12 0727GMT


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