ACE Aviation Holdings, parent of Air Canada, agreed to sell a 70% interest in its wholly owned maintenance, repair and overhaul subsidiary ACTS to an investment consortium that includes Sageview Capital and KKR Private Equity Investors in a transaction valuing ACTS at approximately C$975 million (US$912.2 million).

ACE will retain 30% and Air Canada will remain ACTS' largest customer. "This transaction is an important step in ACE's strategy of unlocking the value in all of our businesses," President and CEO Robert Milton said. He added that the move is in line with the company's strategy of making ACTS a more profitable standalone entity. Sageview and KKR "have a track record of helping businesses that were once part of large conglomerates to become bigger, stronger and more competitive as independent organizations," he explained.

"This investment brings us closer to our goal of establishing ACTS as the leading independent aircraft maintenance provider in the Americas," President and CEO Chahram Bolouri said. "Canada is a mature market for ACTS. To be successful, we have to leverage our current capabilities and expand beyond our borders to capture a growing share of an C$18 billion market opportunity for MRO in North and South America."

The transaction is expected to close during the third quarter and is subject to regulatory approval. ACTS employs approximately 4,800.