International Aerospace Coatings Ltd (IAC), a global aircraft painting and aviation services company that is based in the US, is set to take over the operations of Aviation Cosmetics, a company that was evicted from a government-owned site after it failed to pay rent for the past two years.
Up until 2024, a different Irish company named Shannon Technical Services Ltd (STS) was in advanced talks with Aviation Cosmetics, with the acquisition previously being valued at around €15 million.
The acquisition deal fell through after the buyer claimed that Aviation Cosmetics had misrepresented its finances, an accusation which the latter company denies. STS Ltd is now suing Aviation Cosmetics to recoup a €3 million deposit it had put down for the deal.
This year, Aviation Cosmetics’ financial situation deteriorated further, as evidenced by rental dues amounting to €453,000 and its inability to pay a workforce consisting of about 50 painters and an additional 20 individuals employed as part of its administrative unit.
As recently as December of last year, employees from IAC Ltd, the US-based company that is now set to take over, were inspecting Aviation Cosmetics’ operations, with internal sources confirming that the acquisition appears to be a done deal.
After STS Ltd successfully obtained a garnishee order to freeze Aviation Cosmetics’ funds, the General Workers’ Union (GWU) intervened directly in the proceedings to request the release of salaries for workers who hadn’t been paid since January.
One of the employees involved with Aviation Cosmetics, who was granted anonymity to speak frankly about the company’s operations, expressed relief at finally being paid after two months of being left in the dark – though uncertainty about the employees’ future remains until a new deal is inked.
The employee recalled how, back in November, Frits Widdershoven, who is listed as Aviation Cosmetics’ sales chief on their website, had claimed to be going out on temporary leave due to personal issues.
Widdershoven hasn’t returned to work since then, another indicator that the company was in serious trouble, over and above clear signs which were already publicly known through the lawsuit filed by STS Ltd.
Despite the myriad financial and legal quagmires that Aviation Cosmetics is currently dealing with, IAC Ltd appears undeterred by Aviation Cosmetics’ liabilities, and continues to express interest in the acquisition.
Understandably, employees at Aviation Cosmetics who are anxious to secure a position with IAC Ltd are now questioning why the government appears to be dragging its feet when an interested buyer has made itself readily available.
Questions have been sent to Frits Widdershoven, IAC Ltd, and the Economy Minister.
A spokesperson for the Economy Minister passed on our queries to INDIS CEO Jean Pierre Attard, who said that “at this stage, INDIS is unable to disclose the identities of the parties involved in the potential acquisition of the business”.
“These matters remain strictly confidential as part of ongoing commercial negotiations. However, we can confirm that there is interest from multiple companies,” Attard said.
“Any transaction in which INDIS and Malta Enterprise are involved in will be contingent upon the full takeover of the present company workforce. This stipulation ensures the continued employment of current staff and forms a fundamental part of all ongoing negotiations,” Attard added.
IAC Ltd and Frits Widdershoven did not respond to our request for comment by publication time.
