Fondo Italiano d’Investimento (FII) could consider a potential exit of Mecaer Aviation Group (MAG) later this year, said Gianpaolo Di Dio, senior partner and CIO at the sponsor.

FII will consider potential exit options for its controlling stake in the Italian aeronautic company over the next months, in parallel with MAG’s planned acquisition strategy, he said.

More concrete steps towards the potential exit are expected to take place in the second half of the year, he added.

Another private equity buyout would be a likely scenario, he said. The sector sees high appetite from investors, and potential counterparts will be carefully identified, he said, adding that the sale is not likely to be a structured auction.

Di Dio did not rule out that FII could reinvest in the company with an active role.

MAG generated EUR 224m in 2024 revenue with EUR 30m EBITDA and forecasts a turnover of EUR 250m with EUR 34m EBITDA for 2025, he said.

FII acquired MAG in August 2021, with Stellex Capital Management also holding a minority stake.

Stellex declined to comment on potential exit plans.

The company saw an expansion boost ever since, having grown its revenue from EUR 139m at the time of the buyout, he said.

MAG’s acquisition strategy

MAG is scouting the market for acquisition targets with its internal resources and has started building a pipeline, Di Dio said.

The company, which specialises in the design and manufacturing of technology-focused equipment systems, looks for targets active in the electronics and electromechanics fields that could help it strengthen its technological expertise, he said.

Potential acquisitions are being sought in Italy and the US, a strategic market where MAG also has a key subsidiary, he said.

The company is interested in acquiring firms with revenues in the EUR 25m-EUR 50m range, he said. However, more transformational acquisitions could be considered, he said, noting that in such a scenario, it would likely seek to partner up with other investors.

MAG will fund its acquisitive growth with its internal cash resources and the financial support of its backers, he said. FII has just completed a new closing of its FICC II fund, via which it invested in MAG, reaching EUR 503m, he said.

Last year, MAG completed the acquisition of Canada-based Elimetal, which specialises in the production of components for landing gear and aircraft engines. This add-on provides additional production capacity to cope with expected volume growth, he said.

Headquartered in Borgomanero, near Novara, with sites in Italy, Canada, and the US, MAG produces flight control, actuation, and landing systems for helicopters and small-to-medium sized aircraft, for major industry players including Augusta/Leonardo, Bell, and Airbus.

It has around 950 employees and operates via two units: Integrated Aircraft Systems, which is focused on the design and production of aircraft systems; and Aircraft Services, which deals with the customization and optimization of aircraft performances.