Buy-Out Points to Far Eastern Expansion for Dunlop Aircraft Tyres

Private equity business ABN Amro Capital, part of Dutch group ABN Amro, has acquired a 74.6 per cent stake in Dunlop Aircraft Tyres. Royal Bank of Scotland will provide senior debt facilities, according to local news sources. Growth plans are now envisaged with expansion planned both in the US, where where Dunlop Aircraft has some retreading business, and particularly in the Far East, where a new satellite operation is envisaged.

China is seen as the most likely site fro any such satellite operation, but the exact location of that has yet to be decided. However, the proposals are expected to come to fruition in the next 12 to 18 months.

Dunlop’s international customer base includes major international airlines, aircraft constructors, wheel and brake manufacturers and maintenance facilities. Paul Southwell, managing partner of ABN Amro Capital’s UK buyout team, said: “Dunlop is one of only four global manufacturers of aircraft tyres, with significant potential for growth internationally.

Patrick Bulmer, Dominic Collier and Grant Paul-Florence coordinated the investment, which has taken some five months to complete, on behalf of ABN Amro Capital. Mr Bulmer and Mr Collier will join the board of Dunlop as non-executive directors. Ian Edmondson, formerly vice president of Federal Mogul, will also join Dunlop as chairman at completion of the deal.