Palm Beach Capital has acquired 60% of the membership interests of CTS Engines, from Neff Capital Management, which will retain a 40% ownership. Brian Neff, the Managing Partner of Neff Capital Management, will remain as Chief Executive Officer of the CTS Engines.
CTS Engines is a provider of maintenance, repair, and overhaul services to owners and operators of jet engines worldwide. In its 60,000 square foot engine service center, located in Ft. Lauderdale, the company offers complete engine overhauls on the CF6 engine platform, including the CF6-50, CF6-80A, and CF6-80C, as well as other mature jet engine platforms. The company was founded in 2002 and is headquartered in Ft. Lauderdale (www.ctsengines.com).
“With this investment, CTS has the financial foundation to capitalize on the inherent growth within the mature engine MRO market,” said Brian Neff. “For many years, Palm Beach Capital has demonstrated success in partnering with management to grow companies. Going forward into 2014, when we expand our services beyond the CF6 platform and add development engine testing, we will rely on our partner to help us maximize opportunities as they develop.”
Palm Beach Capital makes control and non-control investments of $3 million to $20 million in companies with enterprise values from $10 million to $100 million and that have a minimum EBITDA of $3 million. The firm is both industry and location agnostic. Since founding in 2001, Palm Beach Capital has made investments in 37 companies and has approximately $325 million in total assets under management. The firm has offices in West Palm Beach and Tampa (www.pbcap.com).
“We are extremely pleased to partner with Brian Neff and his management team as they work to take CTS to the next level,” said Nate Ward, Partner and Co-Founder of Palm Beach Capital. “We believe that the fundamentals of the mature jet engine market are compelling and require a specialized maintenance, repair, and overhaul focus.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-19-13