StandardAero, a provider of aerospace engine aftermarket services, announced terms for its IPO on Monday.
The Scottsdale, AZ-based company plans to raise $1.0 billion by offering 46.5 million shares at a price range of $20 to $23. Cornerstone investors Blackrock, Janus Henderson, and Norges Bank plan to purchase $275 million worth of shares on the IPO (27.5% of the deal). At the midpoint of the proposed range, StandardAero would command a fully diluted market value of $7.1 billion.
Acquired by Carlyle in 2019, StandardAero is a leading independent provider of aerospace engine aftermarket services, consisting of maintenance, repair, and overhaul solutions for fixed and rotary wing aircraft across commercial, military, and business aviation sectors. The company has longstanding relationships with both engine manufacturers and aircraft operators, and is authorized by OEMs such as GE Aerospace, CFM International, and Rolls Royce. StandardAero's services include scheduled and unscheduled engine maintenance, component repair, on-wing support, asset management, and engineering solutions. The company highlights its support of the CFM56 engine, which powers the Boeing 737NG and Airbus A320ceo family of aircraft.
StandardAero traces its roots to a predecessor formed in 1911. The company booked $4.8 billion in sales for the 12 months ended June 30, 2024. It plans to list on the NYSE under the symbol SARO. J.P. Morgan, Morgan Stanley, BofA Securities, UBS Investment Bank, Jefferies, RBC Capital Markets, Carlyle, CIBC World Markets, HSBC, Mizuho Securities, Societe Generale, and Nomura Securities are the joint bookrunners on the deal. Co-managers are Citizens JMP, Macquarie Capital, Santander, Amerivet Securities, and Drexel Hamilton. It is expected to price during the week of September 30, 2024.
