Pexco, a portfolio company of Odyssey Investment Partners, has sold its aerospace business to TransDigm Group for approximately $496 million in cash. The purchase price includes approximately $160 million of tax benefits to be realized by TransDigm over a 15-year period beginning in 2015. Odyssey acquired Pexco in August 2012 from Saw Mill Capital.
Pexco Aerospace is a maker of extruded plastic interior parts for use in the commercial aerospace industry. Customers include aircraft OEMs, tier 1 interior suppliers and airlines in the aftermarket. The company employs approximately 300 people in two locations in Yakima, WA and Huntington Beach, CA (www.pexco.com/markets/aerospace-defense).
With the sale of its aerospace business, Pexco is now a multi-site extruder of thermoplastic profile, tube and sheet that serves the medical and industrial markets. Pexco also provides design, prototyping, die building, sub assembly and supply chain management. The company is based near Atlanta in Alpharetta, GA (www.pexco.com).
“Pexco Aerospace has grown significantly since we acquired its parent company in 2012, reflecting the positive trends in the global aerospace industry,” said Craig Staub, a Managing Principal at Odyssey. “We are very pleased to complete a transaction that realizes Pexco Aerospace’s attractive value while giving the business a new home as part of a major industry participant that will be a great strategic partner.”
Odyssey makes control investments in middle-market companies in a variety of industries including industrial manufacturing; business, financial and healthcare services; aerospace products; and localized and route-based service businesses. The firm has approximately $4 billion of capital under management and has offices in New York and in Woodland Hills, CA (www.odysseyinvestment.com).
“We are excited for our future as a provider of plastic components focused on the medical and specialty industrial markets. “Our businesses are well positioned to capitalize on many attractive growth opportunities and to serve the needs of their strong customer base in these attractive end markets,” said Neil Shillingford, Chief Executive Officer of Pexco.
TransDigm (NYSE:TDG), the buyer of Pexco Aerospace, is a designer, producer and supplier of aircraft components for use on nearly all commercial and military aircrafts in service today. The company was founded in 1993 and is headquartered in Cleveland (www.transdigm.com).
Harris Williams & Co served as the exclusive advisor to Pexco Aerospace. The transaction was led by Jon Nemo, Doug Kinard, Chris Smith and Meghan McGurk from the firm’s Aerospace, Defense & Government Services Group (www.harriswilliams.com).
“Pexco Aerospace is a differentiated aerospace business that fits well with TransDigm’s overall strategy,” said Mr. Nemo. “This transaction represents another successful investment for Odyssey and supports their strong track record of building leading aerospace companies.”
2015 PEPD • Private Equity’s Leading News Magazine • 5-15-15