Nautic Acquires Aerostar Aerospace
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Nautic Acquires Aerostar Aerospace

aerospace nf1Nautic Partners has acquired Aerostar Aerospace Manufacturing in partnership with the company’s management team. Aerostar is a manufacturer of machined parts used in commercial aircraft, primarily in engines and in auxiliary power units.

aerospace nf4Aerostar is active in manufacturing high-complexity parts using difficult to work with materials such as titanium, Inconel, (an alloy of nickel containing chromium and iron) and other hard-metal alloys. Aerostar has long-term contractual relationships with several Tier-I and Tier-II aerospace customers, and manufactures and services parts for some of the largest and most rapidly growing platforms in commercial aerospace.  The company was founded in 1983 and is headquartered in Phoenix (www.aerostaraerospace.com).

Chris Pierce nf2“The outlook for the commercial aerospace market is attractive, yet the supply chain for critical machined components remains quite fragmented,” said Chris Pierce, a Managing Director of Nautic. “Aerostar is a company with strong operations, good platform exposures, in-demand capabilities, and a blue chip customer base. This company is well-positioned to benefit from and drive consolidation in the space.”

Nautic Partners is a middle-market private equity firm with over $3 billion of equity capital under management. Nautic targets majority equity investments of $25 million to $75 million. Sectors of interest include industrial products, outsourced services, and healthcare. The firm was founded in 1986 and is headquartered in Providence, RI (www.nautic.com).

“In Nautic, we have found a partner who shares our values, and who will provide Aerostar with the resources it needs to grow far into the future,” said Brandon McDermott, CEO of Aerostar. “I am very proud of Aerostar’s talented management team and employees, and I expect an excellent partnership with Nautic.”

As part of Nautic’s investment in Aerostar, the company will expand to a new 55,000 sq. ft. facility and acquire state of the art equipment that will nearly double production capacity over the next few years.  “We look forward to working with the Aerostar team to build a larger business both organically and via targeted acquisition efforts,” said Nick Vidnovic, a Senior Associate of Nautic.

Greene Holcomb and Fischer (GHF) was the financial advisor to Aerostar. GHF is active in middle market mergers and acquisitions, private placements and financial advisory services.  Areas of specialization include consumer, food & agribusiness, healthcare, industrial products & services, business & education services, technology, and energy & infrastructure.  The firm has offices in Minneapolis, Phoenix, Seattle and Atlanta (www.ghf.net).

National Bank of Arizona (www.nbarizona.com) provided financing for the transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-29-15

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