Kellstrom, acquired by AE Industrial in April 2015, is a distributor and service provider for the commercial aerospace engine aftermarket sector. The company specializes in distributing OEM parts, repair management, fleet provisioning, and supply chain management.
Source: Kellstrom Aerospace Group
Customers of Kellstrom – located in more than 75 countries – include airlines, air cargo operators, lessors, maintenance repair organizations (MROs), and original equipment manufacturers (OEMs).
Under AE Industrial ownership, Kellstrom closed several add-on acquisitions including Miami-based The Aircraft Group (April 2015); New York-based Transaero Commercial Distribution (September 2016); and Ireland-based Vortex Aviation (June 2017).
Kellstrom’s TTM revenue through September 2024 was $175 million, with a TTM EBITDA of $20 million. Based on the $200 million enterprise valuation, this equates to a 10x EBITDA valuation multiple.
“It has been a privilege to work alongside our management team to create a leading, independent distributor of flight-critical products and technical services to the commercial aerospace aftermarket,” said Charlie Compton, a managing partner at AE Industrial. “We wish the Kellstrom team continued success as they move forward into their next chapter with VSE.”
Kellstrom, led by President and CEO Oscar Torres with more than 200 employees, was founded in 1971 and is headquartered in Miramar, Florida, with additional distribution centers and service facilities across the United States, Europe, and Asia.
“We are grateful for the support, guidance, and resources AE Industrial has provided throughout our partnership,” said Mr. Torres. “Working closely together, we have enhanced our operations, achieved significant business growth, incorporated new maintenance capabilities, and expanded our records management services and distribution lines.”
The commercial aerospace aftermarket sector, valued at $30 billion in 2023, is positioned for sustained growth as global air travel continues to rise and aging fleets require more maintenance and repairs. Industry analysts anticipate that sustainability trends will play an increasingly critical role, with advancements in materials and technologies shaping the market to meet evolving demands.
Alexandria, Virginia-based and publicly traded VSE Corporation (NASDAQ: VSEC), led by CEO John Cuomo, specializes in aftermarket distribution and repair services for aviation, transportation, and government markets, with operating facilities in Florida, Oklahoma, and Singapore. Customers of the company include commercial airlines, cargo operators, and the U.S. government.
“Today represents the next step in the VSE Aviation product and services growth strategy, with a clear opportunity to profitably grow our business and better serve our global aerospace aftermarket customers,” said Mr. Cuomo. “The acquisition of Kellstrom Aerospace strengthens our OEM-centric value proposition and demonstrates our commitment to growing our distribution and MRO capabilities in the growing commercial aerospace aftermarket.”
Boca Raton-based AEI invests in the aerospace and defense, power generation, and specialty industrial sectors. Typical company targets will have from $50 million to $500 million in revenue. The firm’s most recent fund, AE Industrial Partners Fund III LP, closed with $1.4 billion of capital in March 2021
“It has been a privilege to work alongside our management team to create a leading, independent distributor of flight-critical products and technical services to the commercial aerospace aftermarket,” said Charlie Compton, a managing partner at AE Industrial. “We wish the Kellstrom team continued success as they move forward into their next chapter with VSE.”
“We are grateful for the support, guidance, and resources AE Industrial has provided throughout our partnership,” said Mr. Torres. “Working closely together, we have enhanced our operations, achieved significant business growth, incorporated new maintenance capabilities, and expanded our records management services and distribution lines.”
Alexandria, Virginia-based and publicly traded VSE Corporation (NASDAQ: VSEC), led by CEO John Cuomo, specializes in aftermarket distribution and repair services for aviation, transportation, and government markets, with operating facilities in Florida, Oklahoma, and Singapore. Customers of the company include commercial airlines, cargo operators, and the U.S. government.
Boca Raton-based 
