Paramount wraps up Aerosud buy-in

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The Paramount Group has completed the acquisition of a 19% stake in Aerosud Holdings (Pty) Limited, the privately-owned aeronautical engineering company that manufactures components for global aviation giants Airbus as well as Boeing.

“This acquisition makes The Paramount Group the largest individual shareholder in Aerosud with a position on the board,” a joint media statement released late last week says. The parties did not disclose a sales price.

Paramount Group executive chairman Ivor Ichkovitz says the deal became effective September 1. “This is a strategic acquisition aimed at adding value to both companies through shared innovation and assisting in business development,” he adds.

“This investment will allow Aerosud to continue to expand and develop their technological expertise that is crucial for South Africa’s and the region’s industrial growth, innovative capacity and manufacturing capabilities.”

Aerosud Holdings Group CE Paul Potgieter in October told defenceWeb the two companies have been cooperating intimately for many years, “amongst others in our Gabon contract and the co-ownership of the ex-SA Air Force Mirage F1 fleet which we continue to jointly market internationally,” a reference to the sale of four ex-SA Air Force Dassault Mirage F1AZ fighter aircraft to that country in 2006. The SAAF in 2003 put 21 F1 aircraft up for disposal by way of Armscor.

“…the Paramount Group is thus no newcomer to our business and they are likely to be good partners into the future as well.”

Potgieter now adds the deal cements a partnership “and opens the door to a range of new business opportunities in the aviation industry with Paramount as an equity holder and fully part of all projects undertaken by Aerosud.”