Support services group BBA Aviation has entered into an agreement to dispose of OEM-licensed parts provider Ontic for a total value of $1.36bn.
BBA will sell Ontic to CVC Fund VII on a cash-free, debt-free basis at a multiple "meaningfully above" the group's trading multiple of 11.4 times its 2018 underlying earnings.
The FTSE 250-listed firm said the transaction will enable enhanced focus and investment in its Signature business, which its board believes will be "a significant source of future shareholder value creation".
BBA also noted that the transaction, expected to be completed during the fourth quarter of 2019, should allow for a capital return to shareholders of somewhere between $750m-$850m.
Chief executive Mark Johnstone said: "The Ontic disposal will allow BBA to focus on its core Signature business, the leading global FBO operator and service provider for the B&GA market.
"We remain committed to delivering long-term sustainable value from Signature, a strongly free cash generative business, which after funding investment requirements, should underpin both progressive dividends and ongoing returns of capital to shareholders."