CORE Industrial Partners has acquired Aviation Concepts, a provider of aerospace components.
Aviation Concepts is a distributor of nose-to-tail used serviceable material (USM) aircraft parts and components for a variety of aircraft fleets. USM parts are previously used aircraft parts – engines, avionics, and more – that have been inspected, tested, and certified for reuse. These parts must meet strict safety standards set by aviation authorities including the FAA.
Aviation Concepts’ USM products include avionics and instruments, rotable components, actuation systems, hydraulics, landing gear and brake systems, engine accessories, flight control surfaces, and auxiliary power units that are sold to more than 500 customers including commercial and freight airlines, maintenance, repair and overhaul organizations and other aerospace components distributors.
The company provides replacement parts and inventory management services for Airbus and Boeing commercial aircraft as well as Canadair Regional Jets, Embraer Regional Jets and other regional aircraft fleet types. Aviation Concepts’ inventory consists of more than 50,000 line items valued at over $40 million. Aviation Concepts was founded in 1991 by President Dean Wood and is headquartered near Fort Lauderdale in Sunrise, Florida.
“With more than 30-years of experience, Aviation Concepts and its management team have developed and maintained a partnership-focused approach within the commercial aviation space,” said John May, the managing partner of CORE. “The commercial aviation parts and MRO sector has been a key investment thesis for CORE, and now is the time for us to execute on our vision by making a platform investment in Aviation Concepts, which we believe has a differentiated model supported by strong industry tailwinds.”
Post-closing, Bob Nardelli, a senior operating partner at CORE, will become the chairman of the Aviation Concepts’ board of directors.
“For more than 30 years, we have focused on providing customers with reliable, high-quality parts in a timely fashion,” said Mr. Wood. “We believe our team has done a tremendous job building Aviation Concepts into a unique player in the commercial aviation industry and I look forward to partnering with CORE for the next chapter of growth for the business.”
“Aviation Concepts is a niche player in a highly attractive industry that has differentiated itself with its strong customer relationships and diverse suite of products,” said Jason Fulton, a partner at CORE. “We are excited to partner with Dean and the entire Aviation Concepts team as we leverage our industry knowledge, resources and experience to help expedite the Company’s next stage of growth, expanding its value proposition and market reach through both strategic initiatives and complementary acquisitions.”
Chicago-based CORE makes control equity investments of up to $100 million in North America-based companies with revenues of up to $200 million and EBITDA of up to $20 million. Sectors of interest include a range of specialty verticals within the manufacturing and industrial technology sectors.
© 2024 Private Equity Professional | January 18, 2024
