July 30, 2019 / 7:21 AM / 6 months ago

UPDATE 1-BBA Aviation sells aircraft parts unit in $1.37 bln deal

(Adds details, context on deal)

July 30 (Reuters) - BBA Aviation Plc said on Tuesday it would sell its Ontic aircraft parts and services unit to private equity firm CVC Capital Partners in a $1.37 billion deal, as it focuses on its mainstay airport services business.

The sale leaves the company with its Signature unit, which provides a range of services including passenger handling, office rentals and aircraft parking.

The company said the deal, which is unanimously supported by its board, should return between $750 million and $850 million to shareholders.

BBA bought the Ontic business in February 2006 for $67 million, and has expanded the unit through acquisitions of licences for aircraft parts, the company said.

Sales at the unit, whose major customers include Boeing , Airbus and British Airways, accounted for 15% of the company's overall underlying operating profit in 2018. It reported revenue of $216 million last year.

The company said in May that it was performing in line with expectations, with revenue for the four months ended April 30 up 23% year-on-year, boosted by acquisitions of EPIC, Firstmark and Ontic licences acquired during 2018.

Revenue at the Signature unit rose 22.7% for the period, the company had then said. (Reporting by Justin George Varghese in Bengaluru; editing by Patrick Graham and Saumyadeb Chakrabarty)

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