• Process in second round
• PE firms circling

The Sterling Group recently collected initial bids in the sale of portfolio company West Star Aviation, said four sources familiar with the matter.

Private equity firms are circling West Star, three of the sources said. Arcline Investment Management and Bain Capital are among the sponsors actively looking at West Star, two of these sources said. Greenbriar Equity and H.I.G. Capital could also make sense as potential buyers, one source said.

Management presentations are coming up soon, two of the sources said. The Sterling Group is seeking an EBITDA multiple of at least the mid-teens in the sale of the East Alton, Illinois-based aircraft maintenance, repair, and overhaul (MRO) services company, these sources added.

This news service reported in November that The Sterling Group mandated financial advisors Harris Williams and Jefferies in the sale of West Star. The company generates over USD 100m in EBITDA, as reported in September.

Arcline has been active in its pursuit of aerospace companies. This news service reported earlier this month that Arcline showed interest in acquiring Triumph Group [NYSE:TGI] in the late stages of its sale process, with Triumph Group ultimately agreeing to sell to private equity firms Warburg Pincus and Berkshire Partners in a deal valued at USD 3bn. Arcline took aerospace company Kaman private in a USD 1.8bn deal completed last April.

StandardAero [NYSE:SARO] was named as a good comp to West Star in a report by this news service last month. Bain Capital was among the sponsors that showed an interest in acquiring StandardAero, as reported by this news service last July. StandardAero ended up going public in October 2024.

The Sterling Group, which has owned West Star since 2022, was considering a sale after only a two-year hold of the asset because it was receiving inbound interest in West Star, as reported.

This news service reported in 2022 that West Star was sold by Norwest Equity Partners to The Sterling Group for about 11x-12x EBITDA and was marketed on USD 35m-40m in EBITDA.

In November 2023, West Star acquired Jet East for USD 131m. Jet East provides MRO services and focuses on supporting fractional and managed fleet operators.

West Star specializes in airframe repair and maintenance, engine repair and maintenance, major modifications, avionics installation and repair, interior refurbishment, paint, parts, surplus avionics sales, window repair, and accessory services.

The Sterling Group, West Star, Harris Williams, Jefferies and Arcline did not return requests for comment. Bain declined to comment.