KPMG to sell Aero Inventory

The sale of Aero Inventory has been scheduled to commence next month after its administrators KPMG turned the aircraft parts supplier around.

Aero Inventory (UK) Ltd entered administration in November 2009, after two senior executives were blamed for a misleading stock market valuation. The move also saw the end of several long-term sole-supply contracts to provide aircraft maintenance and repairs.

KPMG has injected tens of millions of pounds into the London-based business since then, and is now preparing to sell it. A price has not been revealed, but the sale is expected to bring in hundreds of millions of pounds.

KPMG anticipate plenty of interest in the business, which supplies airconditioning units and aeroplane engine parts to the likes of Ryanair, Qantas and easyJet, and operates in 130 countries.

It is considered likely that bids will come from private equity businesses, though trade buyers are also thought to be interested. Aero turned down a previous offer for £500 million from Bridgepoint in 2008.

Aero was investigated by the Serious Fraud office in 2010 following a series of complaints made. The Accountancy and Actuarial Discipline Board started an investigation in March into Deloitte’s involvement in managing Aero’s accounts and is still taking place.

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