Advent International has agreed to acquire a minority stake in Avio, an Italian aerospace and defense propulsion company, through a €109.7 million reserved capital increase. This investment aims to support Avio's expansion plans, particularly in solid rocket motors.

The deal involves Advent subscribing to a maximum of 3,275,268 new shares at €33.40 each, with the full amount payable in cash upon closing. The transaction is contingent on regulatory approval, including clearance under Italy's Golden Power regime, which scrutinizes foreign investments in strategic sectors.

Advent will be subject to a 12-month lock-up period post-closing and will gain board representation. This move signals private equity's growing interest in the defense and aerospace supply chain, potentially signaling further consolidation or investment in specialized manufacturing capabilities.