KRG Capital Partners has agreed to sell its portfolio company PAS International to StandardAero Holdings, a portfolio company of Veritas Capital since July 2015.
PAS Technologies is a provider of engine and airframe component repairs, coating services (for high-wear, high-heat and highly corrosive environments), and new parts manufacturing for the commercial and military aerospace, industrial gas turbine, and oil and gas markets. The company is headquartered in Kansas City, MO (www.pas-technologies.com).
“Through organic capital investment and strategic initiatives, our partnership with KRG allowed us to strengthen our ‘one stop shop’ capabilities that includes both manufacturing and a full set of special processes in order to enhance our value proposition to some of the world’s leading OEMs,” said Tom Hutton, PAS CEO. “We thank KRG for their support and are excited about continuing to execute our growth strategy as part of StandardAero.”
StandardAero is one of the world’s largest independent providers of aircraft engine MRO services including engine and airframe maintenance, repair and overhaul, engine component repair, engineering services, interior completions and paint applications. The company serves an array of customers in business and general aviation, airline, military, helicopter, components, energy and VIP completions markets. StandardAero is headquartered in Scottsdale, AZ with facilities in the US, Canada, Europe, Singapore and Australia (www.standardaero.com).
The sale of PAS, acquired by KRG in October 2010, represents the 11th exit in KRG’s $1.96 billion Fund IV which closed in November 2007. “We have really enjoyed working with the PAS management team. They have done an excellent job of improving the company’s plant-level capabilities and in the process enhancing PAS’ reputation for on-time service and leading-edge quality control,” said Chuck Hamilton, a Managing Director of KRG. “PAS is a great fit with StandardAero and we are confident the PAS team will enjoy continued success with their new strategic partner.”
KRG Capital specializes in acquiring and recapitalizing unique and profitable middle-market companies that have from $10 million to $100 million or more of EBITDA. Founded in 1996, KRG has $4.4 billion of capital under management and is based in Denver (www.krgcapital.com).
Veritas Capital invests in companies active in the aerospace & defense, healthcare, technology, national security, communications, energy and education sectors. The firm is headquartered in New York (www.veritascapital.com).
Houlihan Lokey (www.HL.com) and Alantra (www.alantra.com) were the financial advisors to PAS on this transaction.
© 2017 Private Equity Professional | March 30, 2017
