MB Aerospace, a provider of aerospace components and a portfolio company of Arlington Capital Partners, has acquired Delta Industries, a manufacturer of aero-engine components. Arlington Capital acquired MB Aerospace in March 2013.
Delta Industries specializes in the fabrication and machining of complex aero-engine components. The company had annual revenues of approximately $60 million in 2012. Delta Industries is based in Hartford, CT (www.delta-industries-ct.com).
“The Delta acquisition is part of a progressive widening of MB Aerospace’s capability footprint to address the critical service needs of our aero-engine customers. Historically, a typical aero-engine would have more than 400 unique suppliers; on the next generation of aero-engines this will be reduced to around 100 with tier one suppliers required to operate across a range of capabilities to serve their customers,” said MB Aerospace CEO Craig Gallagher. “The acquisition of Delta adds significant technical capabilities to the group, especially in relation to large-diameter fabrications and robotic welding of complex high-value aero engines components. In addition to its high levels of capability, Delta has an industry-leading reputation for its ability to manufacture challenging system-critical components.”
MB Aerospace is a provider of highly engineered components for the commercial and military aero-engine and industrial gas turbine markets. The company manufactures complex rings, casings and other engine components used in aero engine and industrial gas turbine platforms. Customers include Pratt & Whitney, Rolls-Royce, General Electric, Boeing, United Technologies, GKN, Mitsubishi Heavy Industries and Volvo Aerospace. The acquisition of Delta will expand the MB Aerospace business to projected revenues of more than $160 million and to 550 employees (up from 370) for the 2013 financial year. MB Aerospace is headquartered in Motherwell, UK (www.mbaerospace.com).
“We see exciting opportunities in the years ahead, as the global airline sector is expected to grow significantly over the next two decades, doubling from its current 20,000 aircraft by the early 2030s. This growth is being fuelled by the rising demand for travel in Asia coupled with the need of European and American airlines to replace ageing aircraft, dramatically increasing the demand for the wide range of world-class manufacturing and aftermarket services we already provide to some of the world’s biggest aviation players,” said Mr. Gallagher. “The global installed base of gas turbine aero-engine derivatives is nearly 225,000 units across various aerospace, defense and industrial applications and the majority of this fleet is expected to be growing and in service for several decades to come.”
Arlington Capital Partners has $1.5 billion of committed capital and focuses on buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include aerospace & defense, government services and software, healthcare services, business services, education and training. The firm is based in Washington, DC (www.arlingtoncap.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 6-2-13
