Italy's Avio to sell 7% stake to Advent for €109.4 million

July 6 (Reuters) - Italian rocket maker Avio on Monday agreed to sell a minority stake of about 7% to private equity firm Advent International for €109.4 million ($125.18 million) to support its expansion, including in the United States.

• The deal, subject to conditions including government approval, involves the issuance of up to 3.28 million new shares at €33.40 each, with Advent subscribing in cash at closing, Avio said.

• "The capital strengthens Avio's balance sheet and accelerates its long-term strategy to address critical shortages in solid rocket motor production across both the U.S. and Europe," Avio said in a statement.

• Avio, with a market value of about $1.8 billion, is looking to expand its footprint as defense spending rises and supply bottlenecks persist.

• In May, the company reported a rise in first-quarter core earnings from a year earlier, as stronger revenue offset increased costs linked to its U.S. business.

($1 = 0.8740 euros)

(Reporting by Natalia Bueno Rebolledo in Mexico City; Editing by Jonathan Ananda)