Arlington Capital Partners has formed Radius Aerospace to acquire the forming and fabrication facilities of publicly-traded Triumph Group.
Radius is a provider of fabrications, forming and other products and services primarily to OEM and Tier 1 aerospace and defense companies. The company specializes in all forming methods, including titanium sol-gel coating, metal bonding, specialty alloy welding, stretch forming, hydroforming, welding, brazing, titanium SPF forming, and aluminum and titanium chemical milling.
Radius is headquartered in Hot Springs, AR (170,000 sq. ft.) and has additional facilities in Shelbyville, IN (186,00 sq. ft.); Fort Worth, TX (145,000 sq. ft.); Phoenix, AZ (61,000 sq. ft.); and San Diego, CA (130,000 sq. ft.).
Under Arlington Capital ownership, Radius will be led by its existing management team which includes CEO Tony Johnson, COO Bill Boyd, and CFO Tim Lohrenz. “I am very excited and privileged to lead and carry on the tradition of this collection of companies operated by an extremely dedicated and talented group of individuals,” said Mr. Johnson. “I am also excited to work with Arlington Capital Partners, a successful private equity group with over 20 years of investment experience in aerospace and defense.”
“We are excited to begin our partnership with Tony and the Radius team, who have stellar reputations within the industry,” said Peter Manos, a managing partner at Arlington Capital. “In addition to the current robust book of business, we plan to continue to expand our strong customer relationships, leveraging the Company’s unique forming, fabricating and special processing capabilities and track record of delivering high-value solutions. We plan to further augment the company’s growth and capabilities through both organic and strategic add-on initiatives.”
Arlington Capital invests in buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include government services and technology; aerospace and defense; healthcare; and business services and software. Arlington is investing out of its fourth fund which closed in July 2016 with $700 million of capital.
“Radius represents an attractive opportunity for Arlington Capital to continue its history of partnering with differentiated suppliers in critical positions within the aerospace and defense value chain,” said Bilal Noor, a vice president at Arlington Capital. “The company’s forming and processing abilities fulfill a necessary and niche need within the industry and position Radius for rapid and defensible growth.”
Triumph Group (NYSE: TGI), the seller of the forming and fabrication facilities, is a Berwyn, PA-headquartered designer and manufacturer of aircraft components, systems and accessories. Since 2016, Triumph has been active selling non-core operations to realign the company and reduce debt. The company’s sales in 2018 were approximately $3.2 billion (www.triumphgroup.com).
Arlington Capital is based in Chevy Chase, MD (www.arlingtoncap.com).
© 2019 Private Equity Professional | April 23, 2019
