Vance Street acquired a majority interest in Klune Industries in early 2010 and undertook a number of initiatives to improve operations. This included bolstering the management team, integrating a strategic acquisition and streamlining manufacturing processes. These activities served to nearly double revenue and significantly increase profitability.
“In all of our investments, we seek to provide the resources and operational expertise that will enable our portfolio companies to reach their full potential and attain the highest level of operating performance,” said Richard Crowell, partner at Vance Street. “Our partnership with Klune is a clear demonstration of the successful execution of this strategy.”
The sale of Klune to Precision Castparts is the first from Vance Street’s current fund.
Klune Industries is an aerospace contractor – manufacturing complex parts, assemblies and components for commercial aircraft, military aircraft and missile systems. The company specializes in manufacturing doors, nacelles, wings and other aerostructures for the commercial market, and missile systems components, fuel tanks, bomb racks, rotors, ground support and airframes for the military market. The company’s products can be found on the platforms such as Boeing’s 737, 747, 777, 787, Airbus’s A-320, A-350, A-380, and Gulfstream’s G650. Klune operates facilities in North Hollywood, CA, Spanish Fork, UT, and Kent, WA, and employs approximately 740 employees. The company is headquartered in Los Angeles (www.klune.com).
Precision Castparts is diversified manufacturer of complex metal components and products. It serves the aerospace, power, and general industrial markets. Products include large, complex structural investment castings, airfoil castings, forged components, and highly engineered, critical fasteners for aerospace applications. In addition, the company is a producer of airfoil castings for the industrial gas turbine market. Precision Castparts manufactures extruded seamless pipe, fittings, forgings, and clad products for power generation and oil & gas applications; commercial and military airframe aerostructures; and metal alloys and other materials to the casting and forging industries. The company is headquartered in Portland, OR (www.precast.com).
Vance Street Capital makes control investments in companies with enterprise values up to $200 million. Sectors of interest include aerospace and defense, medical components and devices, precision industrial manufacturing and business services. The firm is based in Los Angeles, CA (www.vancestreetcapital.com).