Used serviceable material provider APOC Aviation has told Aviation Week Network about its investment plans following its closing of a multi-million dollar financing facility with Deutsche Bank that will help APOC grow its existing business in trading and leasing, and add new verticals that complement its core activities.
The company will deploy $140 million of capital expenditure on aircraft and engine assets in the next 12 months, says APOC Aviation CEO Gavin Simmonds.
This money will be used to build a large inventory of landing gear for exchange, sale and lease--supported by a new landing gear repair shop that is being set up.
The capital will also help fund whole narrowbody aircraft purchases for teardown in what is a tight market, given airlines’ need to keep operating older aircraft to mitigate new-build delivery delays. APOC is also looking to build a up a stock of narrowbody line replaceable units for exchange.
The Dutch company is also seeking to expand its portfolio of CFM International CFM56 engines, having launched its engine division just before the pandemic in 2019. At the time, APOC was using online crowdfunding to finance some of its aircraft purchases, so the backing of Deutsche Bank certainly marks a step up for the business.
"We are pursuing a strategy of controlled growth that will propel APOC into a different stratum for trading, stocking and leasing aircraft assets,” says Simmonds. “We will be very active in the market globally, so capital backing from an international major bank with an impeccable pedigree and reputation validates our plans."
He also praised APOC’s majority shareholder, private equity firm Egeria, for sticking with the business through the pandemic.
Meanwhile, Egeria partner Ivo Groen in ‘t Woud said: “We support APOC in its strategy to become a truly international USM provider and mature asset lessor. The business will become the intuitive choice for leading airlines and it is our role to help APOC navigate a precise and unwavering path to this outcome.”
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