Arlington Capital Partners has sold MB Aerospace, a Tier I engine component manufacturer and repair business, to Blackstone. Arlington Capital first invested in the company in April 2013.
MB Aerospace is a provider of engineered components – complex rings, casings and other engine parts – for the commercial and military aero-engine and industrial gas turbine markets. Customers include Pratt & Whitney, Rolls-Royce, General Electric, Boeing, United Technologies Aerospace Systems, Mitsubishi Heavy Industries, and the US Department of Defense. The company is led by its CEO Craig Gallagher who has held the position since 2003. MB Aerospace has facilities in the US, UK, and Poland and is headquartered near Glasgow in Motherwell, UK (www.mbaerospace.com).
During Arlington Capital’s term of ownership MB Aerospace acquired two businesses. In April 2014 the company acquired Norbert Industries, an aero-engine component manufacturing business based in Sterling Heights, MI; and in June 2013 acquired Delta Industries, an aero-engine component manufacturing business based in Hartford, CT.
“MB Aerospace has been a blueprint investment for Arlington Capital. We partnered with an outstanding management team to be an early consolidator in a large and rapidly growing market with a differentiated product offering and together, we have built one of the largest independent pure-play aero-engine component manufacturers,” said Peter Manos, a Managing Partner at Arlington Capital Partners.
Arlington Capital Partners has $1.5 billion of committed capital and invests in buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include government services and technology, aerospace & defense, healthcare, and business services & software. MB Aerospace will be the fourth exit for Arlington Capital in the last twelve months and continues an active year for the firm which also made three new platform investments. Arlington Capital is based in Chevy Chase, MD (www.arlingtoncap.com).
“Our partnership with Arlington Capital has been a tremendous success for both MB Aerospace and Arlington Capital,” said Mr. Gallagher. “Arlington Capital has provided substantial capital to help us grow, while allowing us to leverage their network of industry experts, deep sector knowledge and other resources to accelerate MB Aerospace on its path to record sales.”
Blackstone, the buyer of MB Aerospace, is one of the world’s largest investment and advisory firms. The firm’s alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-focused funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Blackstone’s private equity business in total manages more than $91 billion in equity as of the end of the third quarter 2015. Blackstone is headquartered in New York (www.blackstone.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 12-18-15
