First Aviation Services has entered into an agreement to sell the majority of its interest in Aerospace Products International to Resilience Capital Partners. This acquisition is the sixth platform investment for Resilience Fund III, L.P. which closed in 2012 with $222.5 million of committed capital.
“Aerospace Products International is well-positioned to take advantage of the industry’s trend toward the outsourcing of after-market product distribution and other critical functions. We will make a significant investment of capital to execute on our strategy of enhancing the company’s capabilities and competitiveness and build it into a truly great international company,” said Steven Rosen, Co-CEO of Resilience.
Aerospace Products International (API) distributes aircraft parts and accessories to manufacturers, maintenance providers and operators of widely used military, commercial, corporate and general aviation aircraft. The company also provides supply chain management services to the aviation industry. API is based in Memphis (www.apiworldwide.com).
Resilience Capital Partners specializes in investing in lower middle market companies across a range of industries. Resilience’s investment strategy is to acquire companies in a variety of special situations including underperformers, corporate divestitures, turnarounds, and orphan public companies. Since its inception in 2001, Resilience has acquired 28 companies under 20 platforms with over $2 billion in revenues. The firm is based in Cleveland (www.resiliencecapital.com).
Kenneth Ricci and Ulf Buergel, both operating partners with Resilience, will oversee the investment on behalf of Resilience. API’s President and Chief Executive Officer, Andrew Trosper, will continue in his role after the transaction is complete.
“Aviation services is a complex and capital-intensive industry, but it is one that we know well from our other investments,” said Mr. Buergel. “We have the experience, management expertise and capital resources to help Aerospace Products International build upon its strong foundation and benefit from the growing aviation market.”
The seller, First Aviation Services, is a provider of repair and overhaul, retables management and related engineering services to the aviation industry. The company’s principal operating subsidiaries are Aerospace Turbine Rotables (Wichita, KS) and Piedmont Propulsion Systems (Winston-Salem, NC). First Aviation Services is based in Westport, CT (www.firstaviation.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 3-21-13
