Arlington Capital Partners (ACP) has formed Kinetic Engine Systems as a new platform in the aerospace and defense engine sectors.
Kinetic includes Cadence Aerospace which ACP acquired from Court Square Capital Partners in November 2017 and is joined by three new acquisitions with the buys of Arizona-based Walbar Engine Components from Cornerstone Capital; and Connecticut-based Numet Machining Techniques and Connecticut-based AeroCision from Bromford Group, a former portfolio company of Liberty Hall Capital Partners. In July 2023, AeroCision and Numet filed petitions in the United States Bankruptcy Court seeking relief under chapter 11 of the United States Bankruptcy Code. Liberty Hall fully exited Bromford Group in August 2023 with a sale to Endless, a UK-based private equity firm.
Kinetic, led by CEO Scott Ransley, is a Tier 1 supplier of machined parts, subassemblies, assemblies and repair and overhaul services to major aero-engine OEMs and other Tier 1 suppliers. The company’s new and aftermarket products include all critical parts of the engine, including housings, manifolds, airfoils, blades, vanes, seal segments, cases, and rings with a focus on difficult-to-manufacture rotating, hot section and high-pressure parts.
With the close of the new add-on acquisitions, Kinetic’s operations now include Massachusetts-based B&E Tool (Cadence) with 72,000 square feet of facilities and 115 employees; Massachusetts-based Tell Tool (Cadence) with 96,000 square feet of facilities and 112 employees; Arizona-based ADM (Cadence) with 70,000 square feet of facilities and 164 employees; Connecticut-based Numet with 60,000 square feet of facilities and 81 employees; Connecticut-based AeroCision with 40,000 square feet of facilities and 54 employees; and Arizona-based Walbar with 170,000 square feet of facilities and 330 employees.
In total, Kinetic now has 9 facilities in the US and Mexico with more than 500,000 square feet of facilities and 850 employees.
“Each of the individual legacy companies brings with it strong leaders, dedicated employee bases and customer-centric cultures,” said Bilal Noor, a principal at ACP. “We are excited to bring these teams together to unlock significant strategic value as well as revenue and operational synergies. We look forward to building upon their past successes and establishing Kinetic as a formidable player in the aerospace and defense industry.”
Bethesda, Maryland-based Arlington Capital invests in government-regulated industries and adjacent markets including aerospace and defense; government services; and technology, healthcare, and business services.
“Aerospace engine component manufacturing has been a longstanding investment focus for Arlington,” concluded Peter Manos, a managing partner at ACP. “The creation of Kinetic as a leading supplier in the sector is a significant step in our strategy.”
Arlington closed its $1.7 billion fifth fund in June 2019 and is currently raising its sixth fund which has a $3.5 billion target. In February 2021, Goldman Sachs Asset Management made a non-voting minority equity investment in the firm.
© 2024 Private Equity Professional | January 9, 2024
