FMI, a portfolio company of AE Industrial Partners, has acquired The Atlas Group from Graham Partners.
Atlas manufactures flight-critical, complex assemblies on a group of commercial, military and business aircraft, including the 737 MAX, F-35 Joint Strike Fighter, Gulfstream G650, and nearly every Textron Aviation aircraft. The company’s products include aircraft doors, escape hatches, wing structures, and flight control assemblies. Atlas’ customers include Boeing, Spirit AeroSystems, Textron Aviation, Honeywell, Northrop Grumman, and Gulfstream. Atlas, led by CEO Rick Wolf, is headquartered in Wichita, KS (www.theatlasgroup.biz).
Graham Partners formed Atlas in March 2007 through the acquisitions of Atlas Aerospace and Vitron Manufacturing. During its ownership term, Graham diversified the business into a broader mix of blue-chip customers and aircraft submarkets, expanded the company’s manufacturing technologies and engineering capabilities, and strengthened its manufacturing operations. Overall, the company’s revenues doubled and EBITDA increased by 88% from 2007 levels.
AE Industrial Partners (AEI) acquired FMI, a manufacturer of aerospace structural components and subassemblies, in October 2017. FMI manufactures large and complex components that are used on many of the largest commercial aerospace platforms including the 737, 737 MAX, 777, and 787. FMI’s customers include Boeing, Spirit AeroSystems, Asco Industries, Beechcraft, Caterpillar, General Electric, Phillips Petroleum and others. The company was founded in 1992 and is headquartered north of Wichita in Park City, KS (www.fmi-incorporated.com).
“Atlas has a strong reputation for addressing complex manufacturing challenges and delivering world-class quality to its customers,” said Jon Nemo, a Partner of AEI. “The acquisition of Atlas represents a critical milestone in creating a highly strategic, purpose-built platform and we look forward to partnering with their senior leadership team to grow the business.”
AEI invests in the aerospace & defense, power generation and specialty industrial sectors with a specific focus on technical manufacturing, distribution and supply chain management, MRO (maintenance, repair and overhaul) and industrial service-based businesses. Typical company targets will have from $50 million to $500 million of revenue. The firm is headquartered in Boca Raton (www.aeroequity.com).
“Atlas’ strong industry position and management’s focus on continuous improvement made it very rewarding to partner with the team,” said Chris Lawler, a Managing Principal at Graham Partners. “We are proud to have built a widely respected leading aerospace assemblies manufacturer and we wish Atlas continued success under new ownership.”
Graham Partners acquires companies with EBITDA between $5 million and $50 million and will invest in smaller companies as add-on acquisitions to existing portfolio companies. The firm is sponsored by the Graham Group, an industrial and investment concern with interests in plastics, packaging, machinery, building products, and outsourced manufacturing. Graham Partners was founded in 1988 and is headquartered in Philadelphia (www.grahampartners.net).
Lazard was the financial advisor to Atlas and PricewaterhouseCoopers was the financial advisor to AEI.
© 2018 Private Equity Professional | October 10, 2018
