Dunlop Aircraft Tyres signs £40 million private equity deal

Birmingham, UK - Dunlop Aircraft Tyres has changed ownership in a deal rumoured to be worth around £40 million (€60 million). ABN-Amro Capital has bought 74.6 percent of the equity, subject to normal closing conditions. The deal is epected to complete in June.

Based in Birmingham, UK, the 270-strong skilled workforce produces over 100,000 tyres each year.

The world market for aircraft tyres in the segments addressed by Dunlop is currently estimated to be US$ 500 mln with the main drivers of growth in the market being air traffic, which has grown at an average rate of 6 percent annually since the 1970's. Regulation in the sector creates very high barriers to entry, with Dunlop holding a strong, embedded position.

Patrick Bulmer, Dominic Collier and Grant Paul-Florence coordinated the investment on behalf of ABN AMRO Capital. Patrick and Dominic will join the board of Dunlop as non-executive directors. Ian Edmondson, formerly Vice President of Federal Mogul, will also join Dunlop as Chairman at completion.

Paul Southwell, Managing Partner of ABN AMRO Capital's UK buyout team, said: “Dunlop is one of only four global manufacturers of aircraft tyres, with significant potential for growth internationally. We have considerable experience and knowledge of the aerospace industry and are attracted by its long-term growth characteristics and embedded technology. Dunlop occupies an important niche within aerospace, with a highly defensible position and an internationally recognised brand. We are keen to guide the business through the next stage in its development and look forward to working with management to realise that ambition.”

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Press release from ABN-AMro Capital

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