Hertfordshire-based Thermal Engineering, which makes components for aircraft engines, has been acquired by private equity firm Privet Capital.

Aircraft components maker Thermal Engineering has been acquired by private equity firm Privet Capital.

Turnaround-focused Privet acquired 100 per cent of Thermal for an undisclosed sum, with RBS providing debt to fund the buy-out and support future growth.

Under the terms of the deal Vardhan Rajkumar, a former director of telecoms engineering company Trylon TSF, has been appointed as Thermal’s chairman.

Privet Capital director Ian Slater says that Thermal, which has annual sales of £10 million, has been hit by the downturn in the aerospace industry over the past two years.

But he adds: ‘We believe that Thermal is now well positioned with our support to take advantage of the anticipated upturn to meet the forecast increase in demand for aircraft. We also believe that the market in which Thermal operates remains fragmented and, therefore, there may well be opportunities for selective acquisitions.’

Hertfordshire-based Thermal was founded in 1988. Its core business is the manufacture of parts for aircraft engines, including those of the Boeing 777 and Eurofighter Typhoon.