PCX Aerostructures, a new platform company formed by RFE Investment Partners and 24/6 Capital Partners, has acquired the precision components business of SPX Corporation.
PCX Aerostructures is a manufacturer of highly engineered, precision, flight critical and other essential components for rotorcraft and fixed wing aerospace platforms serving the military and commercial markets. PCX has manufacturing facilities in Newington, CT as well as Ronkonkoma, NY and Farmingdale, NY. Industry veteran Alan Haase has been named Chief Executive Officer of PCX.
“I look forward to working with the talented group of employees at PCX to build upon the company’s longstanding reputation for producing highly engineered, quality parts for the military and commercial market,” said Mr. Haase. “Together with RFE and 24/6, we will pursue a growth strategy focused on expanding relationships with current customers as well as securing new customers in both the commercial and military markets. In addition, PCX will actively seek compelling add-on acquisitions that will complement our current capabilities and broaden our business.”
24/6 Capital Partners and Al Haase partnered to find a platform investment providing precision machined parts to the aerospace industry and worked closely with C.W. Downer & Co. (www.cwdowner.com), a Boston-based mid-market investment bank, to source the PCX transaction and secure an equity partner.
“We see a great opportunity to build an aerospace business diversified across military, commercial, rotorcraft and fixed wing platforms,” said Peter Reiter, Managing Director at RFE Investment Partners. “We are excited to partner with Al Haase, 24/6 and the rest of PCX management to grow the company organically and through strategic add-on acquisitions.”
RFE Investment Partners makes control equity investments of $10 million to $25 million in North American small market companies with at least $5 million in EBITDA and enterprise values of $20 million to $100 million. Sectors of interest include business services, manufacturing and healthcare services. The firm is currently investing from RFE Investment Partners VIII. RFE was founded in 1979 and is based in New Canaan, CT (www.rfeip.com).
“RFE has been a great partner for us throughout this process. They showed the resolve and determination necessary to complete a complex transaction,” said Edward Feuerstein, Managing Partner at 24/6 Capital Partners. “We also benefited from C.W. Downer’s extensive industry knowledge, which played a critical role in the transaction. I am confident that with Al Haase’s leadership and vision, coupled with RFE and our experience working with middle market companies, we will successfully grow PCX into a diversified manufacturer of highly engineered precision components.”
24/6 Capital Partners seeks to acquire mid-market companies across a range of industries in partnership with accomplished industry executives. The formation of PCX Aerostructures and its acquisition of the precision components business of SPX Corporation is the fourth transaction completed by 24/6 Capital Partners in the past 24 months. The firm was founded by Edward Feuerstein in May 2011 and is based in Boston (no website found).
SPX Corporation is a Fortune 500 multi-industry manufacturing firm. SPX’s business segments serve developing and emerging end markets, such as global infrastructure, process equipment, and diagnostic tool industries. The company is headquartered in Charlotte (www.spx.com).
First National Bank of Pennsylvania provided the senior debt financing for this transaction.
C.W. Downer & Co. (www.cwdowner.com) advised RFE and 24/6 on the transaction and Loop Capital Markets (www.loopcap.com) advised SPX Corporation.
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-16-14
