Rishworth Aviation sold to UK's Empresaria for US$10M

Wednesday 06 July 2016 03:35 PM

Auckland-based Rishworth Aviation sold to UK's Empresaria for US$10M

By Edwin Mitson

July 6 (BusinessDesk) - Rishworth Aviation, which supplies pilots, engineers and other staff to the airline industry, has been sold to Empresaria Group, which is listed on the London Stock Exchange's AIM market, for US$10 million.

The Auckland-based company lists Norwegian, Korea Air and Vietnam Airlines among its clients and has a regional office in Sweden. Empresaria is buying 82.6% of Rishworth, with the remaining stock in the hands of senior managers.

Rishworth's vendor is the private equity company, Pencarrow, which was established in 1993. Pencarrow assisted a management buy-out of Rishworth in December 2005. It's website states that Rishworth is the final investment of a $75 million fund that was established in June 2005. All the other five companies that were purchased as part of the fund have since been sold.

In a statement to the London Stock Exchange, Empresaria said that in the year ended March 31, Rishworth had unaudited revenue of NZ$138 million, fee income of NZ$8.9 million and earnings before interest and taxation of NZ$3.65 million.

The 17.4% shareholding owned by company executives is expected to be held for between three and four years and can then be voluntarily offered for sale to Empresaria over a minimum of another two years.

Empresaria chief executive Joost Kreulen told investors "we are focused on building a business that is diversified from both a sector and geographic perspective, has leading brands with sector expertise and improves our operational mix and temporary/contract bias. The investment in Rishworth directly fits this strategy."

Empresaria operates in 19 countries including New Zealand, Australia, Europe, the UK, Japan, Chile and the Middle East through a range of different brands.

It is an expensive time for a British company to buy overseas. The pound hit a thirty year low against the US dollar overnight and is at a three-year low against the New Zealand dollar following a public vote to leave the European Union.

Empresaria's shares fell 4.5% to close at 73.5 pence yesterday.

(BusinessDesk)

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