Information on the Target

HMS is recognized as the largest independent manufacturer of structural aerospace components in Türkiye. The company specializes in precision machining, surface treatments, and subassemblies of mission-critical aerostructural parts, primarily serving the commercial aviation market. With a strong commitment to quality and technological advancement, HMS plays a critical role in the aerospace supply chain.

In 2024, Pragma, leveraging its Industrial Buyout Fund III, successfully acquired a 60% stake in HMS, positioning itself strategically within the aerospace component sector as a major player.

Industry Overview in Türkiye

The Turkish aerospace industry has been experiencing notable growth, attributed to increasing demand for commercial aircraft and an expanding global aviation market. Türkiye is emerging as a key player in the aerospace sector, primarily fueled by its robust manufacturing capabilities and strategic geographical location, which offers access to both European and Asian markets.

Additionally, government support through various initiatives and investments has spurred advancements in aerospace technologies. This has led to an influx of foreign direct investment and collaborations with international aerospace firms, further solidifying Türkiye's presence in the industry.

Moreover, the country's focus on innovation, particularly in areas like unmanned aerial vehicles (UAVs) and satellite technologies, is drawing increasing attention. The incorporation of advanced manufacturing techniques and the adoption of Industry 4.0 practices are also enhancing operational efficiencies.

As a result, the Turkish aerospace sector is expected to continue its upward trajectory, presenting significant opportunities for both local and international investors seeking to capitalize on the growing demand for high-quality aerospace components.

The Rationale Behind the Deal

Pragma's acquisition of a majority stake in HMS aligns with the company's strategy to invest in high-growth sectors. By securing a significant share in HMS, Pragma aims to leverage its market position to enhance operational efficiencies and drive innovation within the aerospace components manufacturing field.

This investment not only provides Pragma access to a leading manufacturer but also positions the firm to capitalize on the anticipated growth trends in the Turkish aerospace market, enabling it to benefit from the increasing global demand for aerospace products.

Information About the Investor

Pragma is a well-established investment firm known for its focus on industrial and technology sectors. With a proven track record of successful buyouts and investments, Pragma seeks to drive growth and performance across its portfolio companies.

The firm's expertise in operational enhancements and strategic growth initiatives makes it a suitable partner for HMS. By applying its resources and industry knowledge, Pragma is poised to help HMS scale its operations and innovate within the highly competitive aerospace sector.

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In evaluating the investment in HMS, it appears to be a strategic and well-founded decision by Pragma. Given the robust growth trajectory of Türkiye’s aerospace industry, securing a significant stake in the leading manufacturer positions Pragma to effectively capitalize on upcoming market opportunities.

Furthermore, the inherent strengths of HMS, including its expertise in high precision manufacturing and advanced technologies, provide a solid foundation for future growth. The partnership with Pragma is likely to enhance HMS's operational capabilities and resources, facilitating innovation and market expansion.

Moreover, the increasing global demand for aerospace components further underscores the potential for a strong return on investment. As regional and international players continue to seek high-quality manufacturers, Pragma’s investment strategy appears well aligned with market needs and growth trends.

Overall, this investment could yield substantial benefits, not only for Pragma but also for the Turkish aerospace industry as it continues to evolve in response to global demands.

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