ABN Amro Capital backs defence MBO

The private equity provider has led the £42.3m management buyout of Hunting Engineering, the UK defence contractor.

ABN Amro Capital, the UK private equity arm of ABN Amro bank, has teamed up with the management of Hunting Engineering Limited to buy the UK defence contractor from Hunting Plc.

The company, which will be re-named Insys Limited, specialises in design and development of weapon systems, integration and installation of military communication systems and provision of battlefield infrastructure.

It had a turnover in 2000 of £176m and a staff of 869 supplying equipment and support services to the UK’s armed forces.

The financial structure of the deal has not been disclosed. Senior debt will be provided by Bank of Scotland. ABN Amro Capital was advised by Ernst & Young and Travers Smith Braithwaite. Management was advised by DLA.