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Cobalt and Ellex Advise on Sale of BaltCap’s Shares in Magnetic MRO to Chinese Company

Cobalt and Ellex Advise on Sale of BaltCap’s Shares in Magnetic MRO to Chinese Company

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Cobalt Estonia has advised BaltCap on the sale of 100% of its shares in Magnetic MRO to Guangzhou Hangxin Aviation Technology for EUR 43 million. The buyer was advised by Ellex.

Magnetic MRO is a full-service aircraft maintenance company headquartered in Tallinn. Closing is expected to happen at the end of March, after all regulatory requirements and other closing conditions have been fulfilled.

“During BaltCap’s ownership Magnetic MRO has grown from small regional player to a profitable global company,” stated Kristjan Kalda, the Chairman of the Supervisory Board of Magnetic MRO and Partner of BaltCap. “This is the largest exit transaction in BaltCap’s history and proves our ambition to create highly competitive Baltic companies. I would like to thank the fantastic team in Magnetic, this strategic move is definitely a huge leap for the company.”

In a BaltCap press release the CEO of Magnetic MRO, Risto Maeots, said: “Magnetic MRO management has been actively looking for opportunities to expand into Asia, the highest growth market in aviation. Hangxin’s location and service portfolio is complementary to Magnetic MRO, creating substantial synergies and new business opportunities. For the management Hangxin is a perfect match and we are thrilled to start working with their highly professional and energetic team.”

According to the same press material, Guangzhou Hangxin Aviation Technology is a privately-owned company providing aircraft component maintenance services, based in Guangzhou, Guangdong Province in China. Hangxin services components for over 20 aircraft types, and serves over 50 airlines in Asia, Middle East, Europe, and North America. 

“We are very pleased to welcome Magnetic MRO to the Hangxin team," said Lv Haibo, Vice President of Hangxin, in BaltCap’s press release. Magnetic MRO and their team have developed a high-quality, reliable, customer-focused MRO business. We fully support the existing strategy and executive management team, and will support Magnetic MRO’s focus on continuing to deliver value to their existing customers as well as expanding global MRO presence.”

Cobalt’s work comprised conducting vendor LDD and advising the client in drafting and negotiating the transaction documents. The firm's team included Partner Peeter Kutman, Senior Associate Karl Kull, and Associate Madis Reppo.

The Ellex team included Partner Risto Vahimets, Associate Lawyer Karl-Erich Trisberg, and Lawyer Anna Trine Raudsepp from Estonia, with the help of Associate Partner Robertas Ciocys from Lithuania.