AVCJ

Warburg Pincus set to take stake in Quest Global, outbidding rival funds

  • Anita Davis
  • LinkedIn  
  • Google plus  
  • Save this article  

Warburg Pincus is reportedly set to make a $60 million investment in aeroengineering and manufacturing consultancy Quest Global, coming one month after the PE industry’s biggest names entered the arena to take a stake in Quest.

According to Indian reports citing sources close to the deal, Warburg Pincus outbid Bain Capital in the final round of consideration. ChrysCapital and Kohlberg Kravis Roberts & Co. (KKR) were also said to be competing to make an up-to $75 million investment in the company, as part of a process that was dubbed unique, as such global funds rarely vied to make such a mid-cap investment. Local media expects the deal to be finalized in the coming weeks, further noting that Warburg Pincus valued Quest at approximately $15 million higher than Bain’s final estimate, or around $340 million.

Past reports suggested that Quest sought the funding to settle debt - about $20 million worth - while $30 million will be allocated for business expansion, acquisitions and service upgrades. It currently claims $100 million in yearly revenue, garnered through the sale of software and services to the likes of Airbus, Boeing, EADS, GE and Rolls Royce. Merrill Lynch is advising the Bangalore-based company on the process.

Further reading

  • LinkedIn  
  • Google plus  
  • Save this article  

More on Investments

Latest News

world-hands-globe-climate-esg
Asian GPs slow implementation of ESG policies - survey

Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...

  • GPs