Archives for June 27, 2017

Kellstrom Buys Vortex Aviation

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Kellstrom Aerospace Group, a portfolio company of AE Industrial Partners since April 2015, has acquired Vortex Aviation, a provider of aircraft-on-ground (AOG) on-wing engine maintenance services and engine repairs.

Vortex’ customers include major airlines, MROs, and military and government agencies and the company services all major commercial aircraft engine platforms. Vortex is led by its President Patrick Kaufman and has facilities in Fort Lauderdale; Shannon, Ireland; and Singapore (www.vortexaviation.us) (www.vortexaviation.ie).

Kellstrom Aerospace provides supply chain services to OEMs, airlines, aircraft leasing companies, financial institutions, air transport operators and MROs. The company’s services include OEM parts distribution, pre-owned parts distribution, commercial aftermarket parts provisioning and sunset fleet services, technical services, consignment management, repair management, rotable component programs, whole aircraft/engine asset leasing and trading, and fleet provisioning programs. The company is headquartered in Miami Lakes, FL (www.kellstromaerospace.com).

“When we acquired Kellstrom Aerospace in 2015, our goal was to become a full-service aftermarket solutions provider to airlines, MROs, and the aircraft lessor community,” said David Rowe, Managing Partner, AE Industrial Partners. “The combination of records management, on-wing support services, and hospital shop repairs with the purchasing power and expertise of Kellstrom for end-of-life assets is a unique set of capabilities in the market. The broader market reach Vortex brings to Kellstrom will also benefit our OEM distribution partners, as we expand our geographical footprint and customer base.”

AE Industrial Partners invests in the aerospace, power generation and specialty industrial sectors with a specific focus on technical manufacturing, distribution and supply chain management, MRO (maintenance, repair and overhaul) and industrial service-based businesses.  Typical company targets will have from $50 million to $500 million of revenue. The firm is headquartered in Boca Raton (www.aeroequity.com).

“With Vortex joining Kellstrom, our range of technical services is greatly enhanced,” said Jeff Lund, CEO of Kellstrom. “Whether servicing on-wing support, minor in-house repairs, managing engines through full performance restoration, or technical consultancy projects, we can provide unbiased cost-saving solutions across all major engine platforms.”

© 2017 Private Equity Professional | June 27, 2017

Intervale Buys Pro Oil & Gas Services

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Energy-focused Intervale Capital has acquired Pro Oil & Gas Services (PRO), a provider of completion and drilling services. Proceeds from Intervale’s investment were used to repay indebtedness and provide capital to fund various growth initiatives.

PRO’s services include wireline, pumping, flowback, frac stacks, wireline lubricators and pressure control, surface drilling, chemical mixing plants, and torque and testing. The company is headquartered in Houston and has operations in West Texas, South Texas, Louisiana, Oklahoma and the Northeast (www.proosllc.com).

PRO was founded in 2011 by oilfield entrepreneur Darrell Brewer, who has built and sold several oilfield services companies. Mr. Brewer will continue as CEO of the business under Intervale ownership and retains a significant equity stake. “We are excited to partner with Intervale as we position PRO for its next stage of growth. With a refreshed balance sheet, the company is well positioned to take advantage of the current market environment. Intervale is an ideal partner given their history, experience and network in the oilfield services space,” said Mr. Brewer.

“Darrell and the rest of the PRO team have built a strong business that performed well through the downturn with exposure to many of the current trends defining the North American land market – longer laterals, more stages and increasing completion intensity,” said Jason Turowsky, Partner of Intervale. “We look forward to working with Darrell and his team to build a large, diversified and durable business. We believe that PRO can serve as an agent of consolidation across many of its current business lines.”

Intervale Capital invests exclusively in middle-market oilfield services and manufacturing companies and related technologies. The firm has raised $1.3 billion of committed capital since its inception in 2006 and is currently investing from its third fund. Intervale was founded in 2006 and is headquartered near Boston in Cambridge, MA with an additional office in Houston (www.intervalecapital.com).

PRO was advised by Simmons & Company International, an investment bank specializing in the energy industry, and Piper Jaffray.

© 2017 Private Equity Professional | June 27, 2017