Mobeus has substantially realised its investment in British International Holdings by way of a structured sale of its helicopter operations and its other assets.
British International Holdings held two major long-term contracts to provide helicopter support services to military operations in Plymouth and the Falkland Islands, and operated the scheduled passenger route between Penzance and the Isles of Scilly.
Original Deal
Funds advised by Mobeus backed the secondary MBO of the company from private equity investors in June 2006, investing £3.5 million.
Impact
The business began to face a structural decline, exacerbated by the recession, in the number of passengers flying to the Isles of Scilly. Mobeus actively assisted in the restructuring of the business, investing further funds to enable the group to close the unprofitable route and dispose of its principal property asset.
Further funds were also advanced to facilitate the sale of the company’s major military contracts, thereby preserving employment in the West Country and enabling an orderly winding down of activities.
Sale
In October 2012 the company’s property in Penzance was sold, followed in May 2013 by the sale to Patriot Aerospace of the company’s military contracts.
Mobeus Returns
The investment at cost of £4.7 million has generated total proceeds of £8.3 million (1.8x money).