BBA Aviation plans to sell its Ontic unit for $1.37 billion to CVC Capital Partners’ CVC Fund VII, the London-based global aviation support and aftermarket services provider announced today. The sale of Ontic, a manufacturer of OEM-licensed parts for legacy aircraft, will allow BBA to enhance and invest in its Signature Flight Support business, the company added. “While maintaining a strong balance sheet, we also expect to return between $750 million and $850 million to shareholders and will evaluate how best to structure this return after consultation with our shareholders,” said BBA CEO Mark Johnstone.

Acquired by BBA in February 2006 for $67 million, Ontic “has grown successfully” by way of acquisition of parts manufacturing licenses and organic growth, Johnstone explained. “It now supports more than 39,000 legacy aircraft through its portfolio of over 165 licenses for more than 7,000 parts and over 1,200 customers worldwide,” he added.

The deal is expected to close in the fourth quarter, following shareholder and regulatory approvals. “Ontic is a growing, highly resilient business and a leading player in what we believe to be a very attractive market,” said James Mahoney, senior managing director of Luxembourg-based CVC Capital. “We see multiple opportunities to develop the business further and look forward to working closely with Ontic’s excellent management team to take the company to the next level.”