AE Industrial Partners (AEI) has acquired a majority interest in Alpine Air Express, a logistics and transportation platform providing air cargo services across the Mountain Region of the Western US.
Alpine operates a fleet of over 40 aircraft and transports mail packages and other time-sensitive cargo. The company has multiple contracts with the United States Postal Service, United Parcel Service, and Amazon.
In 2018, after a four-year process, the company received approval from the FAA to convert the Beechcraft 1900D from passenger configuration to cargo configuration.
With a cargo configuration, the Beechcraft 1900D – branded as the Alpine Super Freighter by the company – has a 40% capacity increase, a 23% range increase, and a 7% speed increase over the industry standard 1900C model. This makes the 1900D the largest single piloted cargo aircraft in the world, giving Alpine a competitive edge on its competitors.
Alpine holds a FAR (Federal Aviation Regulations) Part 135 air carrier certificate (operators of business aircraft for hire need a Part 135 certificate and must comply with many FAA requirements regarding flight operations, maintenance and training). Alpine, led by CEO Michael Dancy, was founded in 1975 and is headquartered in Provo, UT (www.alpine-air.com).
AEI partnered on this transaction with the existing shareholders of Alpine, including Mr. Dancy who will continue in his role as CEO of the company. “Alpine is a leader in its regional air cargo market, possessing a unique geographic presence, strong customer relationships, a growing aircraft fleet, and a reputation for reliability and safety,” said Jon Nemo, a partner at AEI. “This leadership position has been driven by the company’s strong management team with whom we are excited to partner in the company’s next chapter of growth.”
AEI invests in the aerospace & defense, 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).
“Demand is steadily growing for reliable air transportation to support increasing shipments and specialty cargo throughout the US,” said Jeff Hart, a vice president at AEI. “AEI has been strategically focused on establishing a platform within this market and will continue to invest in Alpine’s infrastructure while pursuing strategic growth opportunities that will allow the company to even better serve its customers.”
“AEI is a perfect partner for us given their deep industry knowledge and experience working with unique, growing platforms throughout the aviation marketplace,” said Mr. Dancy. “We look forward to our partnership with AEI as we enter our next chapter of growth and execute on key strategic initiatives.”
KPMG was the financial advisor to AEI on this transaction.
© 2019 Private Equity Professional | May 2, 2019