SK Capital has completed its carve-out acquisition of the North America composites and fuel containment division of Parker Hannifin (CFC Division) for $560 million. With this transaction finalized, the acquired business now operates as Axillon Aerospace.
Axillon Aerospace is now an independent provider of carbon fiber composites and fuel solutions for the aerospace sector, manufacturing advanced materials such as fiber-reinforced polymer composites, specialty polymers, and ceramics. The company produces a range of thermoset and thermoplastic materials that perform in both low- and high-temperature environments.
Axillon’s offerings include lightweight composite airframe structures, aerodynamic components for engines (including spacers, fairings, exhaust flaps, and guide vanes), civil and military radomes, electro-thermal ice protection systems, and crash-resistant fuel containment systems (such as flexible fuel bladders) for fixed and rotary wing aircraft. Major aerospace manufacturers and defense contractors, including those producing aircraft and UAV components, are among Axillon’s customers.
Now under SK Capital ownership, Axillon operates six manufacturing facilities across the United States and Mexico, employs approximately 1,700 people, and generates annual sales of around $350 million. The company is headquartered in Rockmart, Georgia, northwest of Atlanta.
At the close of the acquisition, SK Capital appointed Kevin Vicha as the new CEO of Axillon Aerospace. Mr. Vicha is an industry veteran with extensive experience in aerospace and defense, having most recently served as CEO of Bromford Industries, a portfolio company of Liberty Hall Capital Partners from 2021 to 2024. Liberty Hall exited Bromford Group in August 2023, selling it to Endless, a UK-based private equity firm. Earlier in his career, Mr. Vicha held leadership positions at Pratt & Whitney, Engine Alliance, and GKN Aerospace.
“We welcome Kevin to the Axillon Aerospace team. His leadership experience in the aerospace and defense sector, combined with a track record of commercial growth, operational excellence, and customer satisfaction, will greatly benefit the company as it continues its growth journey, now as an independent entity,” said Jack Norris, Managing Director at SK Capital.
“Axillon Aerospace is remarkably well positioned for growth. The design and manufacturing capability is proven across the world’s leading aerospace and defense platforms, with our advanced technology supporting next-generation aerospace programs,” said Mr. Vicha. “The team at Axillon Aerospace has established a strong foundation, and I’m excited to join as we partner with our customers for growth.”
“Axillon Aerospace has a rich heritage of providing differentiated material science solutions for leading customers across the aerospace and defense sector,” said Jared Kramer, a principal at SK Capital. “SK Capital is investing in Axillon Aerospace to build upon its legacy of innovation, quality, and commitment to customer excellence, with the goal of becoming the leading provider of engineered carbon fiber composite components and fuel containment solutions for the defense and commercial aerospace markets.”
SK Capital invests in the specialty materials, ingredients, and life sciences sectors, typically committing $100 million to $200 million in equity for each portfolio company. Collectively, SK Capital’s portfolio companies generate over $14 billion in revenue annually, employ more than 25,000 people, and operate more than 200 plants across over 30 countries.
In April 2024, SK Capital closed SK Capital Partners VI LP with capital commitments totaling $2.95 billion. The firm’s previous fund closed in February 2019 with a total of $2.1 billion. SK Capital, headquartered in New York City, was co-founded by Barry Siadat and Jamshid Keynejad.
Parker Hannifin (NYSE: PH) manufactures motion and control technologies for the aerospace, automotive, and healthcare sectors. The company, founded in 1917 and headquartered in Cleveland, Ohio, is led by CEO Jennifer Parmentier. Over the past several years, Parker Hannifin has been reshaping its portfolio with acquisitions and divestitures, including its 2022 acquisition of the CFC Division through the purchase of UK-based Meggitt. Divestitures have included France Electromechanical Solutions, MicroStrain, and Filter Resources, as well as product line sales of Industrial Profile Systems and Indego exoskeletons.
“One element of our strategy is assessing whether we are the best owner for certain businesses or whether they could be more successful as part of another organization,” said Ms. Parmentier. “The CFC Division is a solid business with strong performance and growth potential backed by a great team, whom we wish continued success under the ownership of SK Capital Partners.”
Lazard served as the financial advisor to Parker Hannifin, and J.P. Morgan Securities advised SK Capital.
© 2024 Private Equity Professional | November 8, 2024
