Case study
Magnetic MRO AS – Aircraft maintenance and repair
Magnetic MRO (formerly Air Maintenance Estonia) is an aircraft maintenance, repair and overhaul (MRO) provider for a narrow-body fleet situated at Lennart Meri Tallinn Airport. Magnetic MRO provides line maintenance services for the customers in Tallinn and heavy maintenance services for customers primarily based in Northern Europe. The company offers heavy maintenance services to Boeing 737 and Airbus 320 Family aircraft and line maintenance in addition to Embraer, CRJ, Fokker and Saab. Magnetic MRO is relatively small but flexible and reasonably priced MRO in Scandinavian and European market. Since BaltCap’s investment in the company in 2010, Magnetic MRO has powered ahead, building new hangars and expanding both its heavy and light maintenance activities.
Revenue and EBITDA development
Local corporate orphan turned into a global player
BPEF | Exited
Magnetic MRO investment thesis
- BaltCap acquired 100% of Air Maintenance Estonia from SAS in 2010 through a limited auction process
- Opportunity to develop an independent leading aircraft MRO company in the region, supported by the industry trend of outsourcing maintenance
- The only MRO in Estonia, well positioned to serve the European and CIS markets
Value creation
- New hangar purpose built by Tallinn Airport, allowing to triple capacity
- Complete management and strategic overhaul
- Conversion into total technical care provider with global reach
- Acquisition of MAC Interiors in the UK
- Establishment of engine stands rental business and a part-out company with Crestline, a US-based investor
Exit in 2018 to a Chinese trade buyer Hangxin after a competitive auction process in 2017.
