Private equity firm Carlyle has abandoned its attempts to offload engine parts maker Paradigm Precision, due to low valuations linked to the ongoing MAX 737 grounding, reports CNBC.
Carlyle had owned Paradigm Precision for nearly a decade and was attempting to offload the engine part maker but was forced to abandon its sale because buyers were unwilling to meet its valuations due to ongoing uncertainty over when the MAX will return to service.
According to CNBC, despite one bid being over the $1billion mark this wasn’t enough for Carlyle. One major customer of Paradigm Precision is GE, which itself yesterday reported lower earnings of $.1.4 billion due to the MAX grounding as Boeing troubled aircraft continues to negatively impact broader aircraft sector.
Boeing suspended production of the 737 MAX last month and while it said it expect the aircraft to certified to fly by mid 2020 it has continued to be dogged by problems such as debris being found in stored aircraft and continued software issues.