MidOcean Exits Noranco
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MidOcean Exits Noranco

norandco nf1MidOcean Partners has reached an agreement to sell aerospace parts maker Noranco to publicly traded Precision Castparts. The firm, along with its co-investor PSP Investments, acquired Noranco in April 2013.

Noranco is a supplier of complex machined and sheet metal components, assemblies, and kits for OEMs and Tier I suppliers in the landing gear, aero-structures, and aero engines markets. The company focuses solely on the aerospace industry, covering commercial/regional jet, business jet and military/rotorcraft markets. Key customers include Honeywell, United Technologies, Bombardier, Safran, Spirit AeroSystems and Boeing.  Noranco sells its products under long term contracts and is a sole source supplier for most of its revenues. The company is headquartered in Toronto (www.noranco.com).

When MidOcean acquired Noranco in April 2013 the firm named Michael Baughan, a MidOcean Executive Board member and former President and COO of B/E Aerospace, as the company’s new Chairman of the Board. MidOcean Chairman Steve Miller and Management Affiliate Ray Valeika also became Directors of Noranco.  In addition to leveraging the experience of these executives to aid in organic growth initiatives, MidOcean completed two add-on acquisitions with the buys of Procesos Termicos in November 2014 and Arnold Engineering in December 2013.

ted virtue nf2“We are very pleased with this outcome which reflects the successful completion of MidOcean’s strategy to leverage our operating resources to drive growth and operating efficiency,” said Ted Virtue, MidOcean’s CEO.  “Noranco has been a terrific platform to consolidate the highly fragmented aerospace sector and we are proud of the job the Noranco management team and our operating resources have done.”

MidOcean invests in middle market companies active in the business and media services, consumer, and industrial services sectors.  The firm has offices in New York and London (www.midoceanpartners.com).

Mid Ocean’s co-investor partner on this transaction, PSP Investments, is one of Canada’s largest pension managers with $112 billion of assets under management.  PSP invests funds on behalf of the pension plans of the Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. PSP is based in Quebec (www.investpsp.ca).

The buyer of Noranco, Precision Castparts (NYSE: PCP) is an industrial goods and metal fabrication company that manufactures investment castings, forged components, and airfoil castings for use in the aerospace, industrial gas turbine, and defense industries. The company is headquartered in Portland, OR (www.precast.com).

Lazard (www.lazard.com) acted as the exclusive financial advisor to Noranco.

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-28-15

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