aerospace components

Gen Cap Exits Aero Systems

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After just over a five-year hold, Gen Cap America has sold Aero Systems Engineering to Calspan Technology.

Aero Systems Engineering (ASE) designs, builds and upgrades jet engine testing and wind tunnel facilities, and provides lab testing services and equipment (thrust stands, engine adapters, universal test components) for jet engines and airframes. ASE’s products and services are sold under the FluiDyne and Aero Systems Engineering brands to aerospace OEMs; maintenance, repair, and overhaul service providers; military organizations; government agencies; universities and research organizations.

Customers include GE Aviation, Pratt & Whitney, Rolls-Royce, American Airlines, China Airlines, Delta, and Korean Air among many others. ASE, founded in 1952, is led by CEO David Meier and is headquartered in St. Paul, Minnesota. ASE, founded in 1952, is led by CEO David Meier and is headquartered in St. Paul, Minnesota.

“ASE remains the world’s number one supplier of ground-based testing solutions and expertise for the aerospace industry,” said Mr. Meier. “Our partnership with Gen Cap helped us achieve this status, and I look forward to continuing with our track record of success with Calspan.”

Gen Cap and Eagle Private Capital acquired ASE in October 2014 from Tonka Bay Equity Partners and Centerfield Capital Partners.

“We have thoroughly enjoyed supporting the ASE team in growing the business since our investment in 2014. This has been an excellent investment for Gen Cap and that is mostly due to the great team that we backed at ASE,” said Matt Lane, a managing director at Gen Cap. “While the current environment has brought uncertainty into the aviation industry, thanks to the ASE team we are confident that ASE will continue to thrive going forward.”

Gen Cap America invests in companies with revenues between $10 million and $200 million and EBIT of $2 million to $15 million that are active in the manufacturing, distribution, or service sectors. The firm is currently investing through Southwest Fund VII, a $250 million fund that had a final close at its hard cap in January 2017. Gen Cap was founded in 1988 and is based in Nashville.

“ASE has been an excellent example of our firm’s long history of teaming with existing management in lower middle-market companies,” said Barney Byrd, the president of Gen Cap.

Buffalo-headquartered Calspan provides research and testing services to the aerospace and transportation industries. The company’s Buffalo facility houses a variety of research and testing facilities, including a transonic wind tunnel; ground vehicle crash testing; dynamic sled testing and research; and tire research and performance testing. At its Niagara Falls facility, the company conducts flight-testing, flight training, and aircraft modifications. Calspan also has prototype test device manufacturing capabilities in Newport News, Virginia, as well as force measurement equipment manufacturing capabilities in San Diego, California.

“In the face of these uncertain times, we remain blessed to have private owners in Lou Knotts and John Yurtchuk, who maintain a vision and commitment for the long-term success of Calspan, its employees and their families. This strategic acquisition is a tangible demonstration of this continued vision and commitment,” said Peter Sauer, the president of Calspan.

The buy of ASE closed on July 24, 2020, and the new company – now Calspan Aero Systems Engineering – will retain its management, technical and support staff and will continue operations at its location in St. Paul.

Private Equity Professional | August 4, 2020

Arlington Carves Again from Triumph

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Publicly traded Triumph Group has agreed to sell its aerospace composites operations to Arlington Capital Partners.

The Triumph composites operations (TCO) – with locations in Milledgeville, Georgia (650,000 sq. ft.) and Rayong, Thailand (135,000 sq. ft.) – provide structural and engine composite fabrications and assemblies to commercial, business jet, and defense platforms including the Boeing 787, 777 and V-22; Airbus A320, A330 and A350; Embraer E-2; Northrop Grumman Global Hawk; and Gulfstream G650/700.

TCO’s products include carbon fiber reinforced polymer (CFRP) and glass fiber reinforced polymer (GFRP) spars, ribs, engine cowls, ailerons, elevators, rudders, spoilers, landing gear doors and access doors. TCO has approximately 600 employees.

Triumph Group (NYSE: TGI) is a Berwyn, Pennsylvania-headquartered designer and manufacturer of aircraft components, systems, and accessories. The company’s sales in 2019 were approximately $2.9 billion.

Since 2016, Triumph has divested 13 businesses (including TCO) as part of an effort to de-lever the company. In April 2019, Arlington Capital formed Radius Aerospace to acquire the forming and fabrication facilities of Triumph. Customers of Arkansas-based Radius include OEM and Tier 1 aerospace and defense companies.

“With the sale of Triumph’s composites business, Triumph continues to execute on its previously announced aerospace structures strategic review. This transaction will further reduce debt and enhance liquidity while moving the company towards its future state as a leading provider of systems and aftermarket service,” said Daniel Crowley, the president and chief executive officer of Triumph. “We are excited to partner with Arlington Capital who will benefit from the experienced workforce, significant capabilities, and embedded customer relationships at both factories.”

Arlington Capital was founded in 1999 and has completed over 90 acquisitions since its inception. Areas of interest include government-regulated industries and adjacent markets including aerospace & defense; government services; and technology, healthcare, and business services. Arlington Capital, based in Chevy Chase, Maryland, is currently investing out of Arlington Capital Partners V LP, a $1.7 billion fund that closed in June 2019.

The sale of TCO is expected to close during the second quarter of 2021 and the business will retain its management, technical and support staff, and will continue operations at its current facilities.

Lazard was the financial advisor to Triumph on this transaction.

Private Equity Professional | August 4, 2020

AEI Closes Eighth and Ninth Aero Buys

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In two separate transactions, AE Industrial Partners has once again displayed its commitment to the aerospace sector with the buys of G.S. Precision, a manufacturer of components and specialty hardware used in aero-engines and defense systems, and Adcole Maryland Aerospace from Adcole Corporation, a portfolio company of Artemis Capital Partners.

The buy of G.S. Precision (GSP) is the ninth platform investment closed by AEI in the last 12 months and quickly follows the announced buy earlier this week of Adcole Maryland Aerospace.

GSP’s complex and high precision products are used in both new and aftermarket applications and are made from a range of materials from high-temperature nickel alloys and titanium to stainless steel and aluminum. The company’s two largest product lines are parts for commercial jet engines and missile guidance systems. GSP’s capabilities include CNC turning, machining, grinding, deburring, prototyping, and assembly.

G.S. Precision has more than 700 employees and is headquartered 100 miles northwest of Boston in Brattleboro, Vermont. The company, founded in 1958 by George Schneeberger, has four additional facilities in the US and Mexico. Today, the company is led by CEO Norm Schneeberger, the founder’s son, who will remain in his current role and continue to be a significant shareholder of the company.

“Since my father founded G.S. Precision over 60 years ago, the company has built a reputation as a best-in-class operation with five facilities and more than 700 employees globally,” said Mr. Schneeberger.   “We found a partner in AEI that clearly understands our business and shares our vision for growing G.S. Precision to the next level and continuing the great legacy created by our family.”

“We are very excited to partner with Norm and the talented G.S. Precision team,” said Charlie Compton, a partner at AEI.  “G.S. Precision has developed a leadership position in small diameter aerospace engine components and defense systems hardware with an unmatched reputation for quality and customer service.  We look forward to leveraging our industry experience and financial resources to build upon this successful foundation and continue to make G.S. Precision increasingly more important to the customers it serves.”

AEI’s other buy this week is Adcole Maryland Aerospace (AMA), a manufacturer of guidance, navigation, and control components used in low-earth orbit and geosynchronous satellites, and interplanetary spacecraft. The company’s key products include sun sensors (a navigational instrument used by satellites and spacecraft to detect the position of the sun); and star trackers and cameras (used to determine the orientation of a satellite and spacecraft with respect to the stars).

AMA’s components have been used on numerous space missions including voyages to Mercury, Mars, Jupiter, Saturn, and Pluto, and its customers include the Department of Defense as well as other government agencies, and private companies in the aerospace and defense sectors. AMA, led by General Manager Don Wesson Jr., was founded in 1957 and is headquartered 30 miles west of Boston in Marlborough, Massachusetts.

“We have been impressed by AMA’s tenure, reputation, and respected flight heritage in the space industry, and we are excited to partner with a truly premier supplier of mission-critical technologies,” said Kirk Konert, a partner at AEI. “AMA represents the first company of AEI’s space technology platform, which will serve the growing demand from both the U.S. Government and the commercial market for space and satellite vehicles.”

Boca Raton-based AEI invests in the aerospace and defense, power generation, and specialty industrial sectors with a specific focus on technical manufacturing; distribution and supply chain management; maintenance, repair and overhaul; and industrial service-based businesses.  Typical company targets will have from $50 million to $500 million of revenue. In July 2018, the firm held a final hard-cap closing of its second private equity fund, AE Industrial Partners Fund II LP, with $1.36 billion in commitments.

Gallagher, Flynn & Company, with offices in Vermont and New Hampshire, was the financial advisor to G.S. Precision on this transaction; and Mesirow Financial was the financial advisor to Adcole Corporation and Artemis Capital Partners.

© 2020 Private Equity Professional | March 6, 2020

Arlington Quickly Builds Forging Platform

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Wasting no time, Arlington Capital Partners has closed the second acquisition for its newly formed Forged Solutions Group with the buy of Firth Rixson Forgings from Arconic (formerly Alcoa).

In June 2014, Alcoa purchased Firth Rixson for $2.8 billion from Oak Hill Capital Partners. In November 2016, Alcoa split into two companies; Arconic, a maker of products used in the aerospace and automotive industries (including the operations of Firth Rixson); and Aloca, which retained the company’s legacy aluminum operations.

Arlington Capital formed Forged Solutions Group in November 2019 as a new platform in the aerospace components sector to acquire the Blaenavon forging business of Doncasters Group. Blaenavon is a maker of complex, precision-forged rings and closed die products used by original equipment manufacturers and Tier 1 suppliers in the aerospace and defense sectors. The business, led by Managing Director Lee Smith, is based 90 miles southwest of Birmingham in Blaenavon, UK.

Firth Rixson is a maker of complex closed die forgings, forged discs, and forward-and-backward extrusion produced shafts and cylinders used by original equipment manufacturers and Tier 1 suppliers in the aerospace and defense sectors. Firth Rixson is based 90 miles north of Birmingham in Sheffield, UK.

“The company is a perfect complement to our recent acquisition of Doncasters Group’s Blaenavon Forging business,” said Peter Manos, a managing partner at Arlington Capital. “The company possesses proprietary and difficult-to-replicate manufacturing capabilities and is well positioned on fast-growing, next-generation engine platforms such as the LEAP, and additionally has a strong portfolio of aftermarket components on sole-sourced programs.”

Editor’s note: The LEAP (leading edge aviation propulsion) is a next-generation turbofan engine platform made by CFM International, a joint venture between GE Aviation and Safran Aircraft Engines.

“We are excited to partner with a veteran aerospace investor in Arlington Capital and the management team at Blaenavon to embark on the company’s next chapter of growth,” said Ben McIvor, general manager of Firth Rixson. “The combination of the two businesses and the creation of Forged Solutions Group creates a supplier with the available capacity of five manufacturing facilities, complementary and fully integrated manufacturing and testing capabilities, a broader product portfolio, and strong managerial expertise to better serve our customers,”

“We could not be happier to have Ben, his deeply experienced team, and Firth Rixson’s long history in aerospace forging join Forged Solutions Group and partner with Arlington Capital,” said Erica Son, a vice president at Arlington Capital. “Forged Solutions Group will continue to evaluate strategic acquisitions that add new customers, new capabilities, and geographic reach to better serve our customers.”

Arlington Capital was founded in 1999 and has completed over 90 acquisitions since its inception. The Chevy Chase, MD-based firm is currently investing out of Arlington Capital Partners V LP, a $1.7 billion fund that closed in June 2019.

© 2019 Private Equity Professional | December 2, 2019

Arlington Forms New Aerospace Forging Platform

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Arlington Capital Partners has formed Forged Solutions Group, a new platform in the aerospace components sector, and has acquired the Blaenavon forging business of Doncasters Group.

Blaenavon is a maker of complex, precision-forged rings and closed die products used by original equipment manufacturers and Tier 1 suppliers in the aerospace and defense sectors.

The business, led by Managing Director Lee Smith, is based in Blaenavon, UK. “I look forward to partnering with Arlington Capital Partners to embark on the company’s next phase of growth by investing in infrastructure, leveraging the firm’s expertise to win new contracts and gain market share, delivering best-in-class on-time-delivery and quality, and evaluating strategic M&A opportunities,” said Mr. Smith. “Arlington has had a long, successful track record in building strong market-leading businesses in the aerospace & defense space, and we look forward to being counted among them.”

“Lee and the Forged Solutions Group team have established credibility as a trusted supplier for mission-critical engine parts,” said Erica Son, a vice president at Arlington Capital. “For Arlington, this investment represents an opportunity to invest in an attractive part of the aerospace & defense value chain with strong customer relationships, high barriers to entry, and high revenue visibility.”

“Blaenavon is a very unique asset, and we are excited to support Lee and his management team in accelerating the company’s growth through investment in new capital and through acquisitions of complementary businesses that expand product offerings, customer lists and geographic reach,” said Peter Manos, a managing partner at Arlington Capital. “The company is well positioned on fast-growing, next-generation engine platforms such as LEAP, GTF, and Trent XWB and additionally has a strong portfolio of aftermarket components on sole-sourced programs.”

Editor’s note: The LEAP (leading edge aviation propulsion) is a next-generation turbofan engine platform made by CFM International, a joint venture between GE Aviation and Safran Aircraft Engines; the GTF (geared turbofan) is a next-generation turbofan engine platform made by Pratt & Whitney; and the Trent XWB (extra wide body) is a next-generation turbofan engine platform made by Rolls-Royce.

Arlington Capital was founded in 1999 and has completed over 90 acquisitions since its inception. The Chevy Chase, MD-based firm is currently investing out of Arlington Capital Partners V LP, a $1.7 billion fund that closed in June 2019.

Doncasters Group, the seller of Blaenavon, is a manufacturer of components and assemblies used in the aerospace, automotive, petrochemical, construction, industrial, transportation, and recreational markets worldwide. The company is headquartered near Birmingham in Burton upon Trent, UK.

© 2019 Private Equity Professional | November 18, 2019

Liberty Hall Sells AIM to Sekisui Chemical

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Liberty Hall Capital Partners has agreed to sell AIM Aerospace, a supplier of composite parts used in the commercial aerospace industry, to Sekisui Chemical Group for $510 million in cash. Liberty Hall acquired AIM in January 2016 for $200 million in partnership with BlackRock Private Equity Partners and Northwestern Mutual Capital.

AIM Aerospace is a Tier II supplier of composite ducting, sub-structural and interiors parts for the commercial aerospace industry.  Products include primary structures (wing components and engine cowls), secondary structures (stow bib brackets and panel assemblies), interior structures (seating, closets and dividers, flight deck doors, and lavatories), environmental control systems (ducting), inlet and exhaust systems, fan cowl components (fan blade spacers, acoustic liners, brackets and bushings), and nacelles (blocker doors, brackets and clips). AIM’s revenues in fiscal 2018 were $178 million.

Customers of AIM include Boeing, Kawasaki, Fuji Heavy Industries, Spirit AeroSystems, GE Aviation, Rockwell Collins, UTC Aerospace Systems, and Gulfstream among others. The company has four facilities in Renton, WA (122,000 sq. ft.); Auburn, WA (43,200 sq. ft.); Sumner, WA (100,000 sq. ft.); and Orange City, IA (100,000 sq. ft.). AIM Aerospace, led by CEO Daniele Cagnatel, has more than 1,000 employees and is headquartered south of Seattle in Renton, WA (www.aim-aerospace.com).

In February 2017, Liberty Hall added-on to AIM with the buy of Quatro Composites, a supplier of aerospace, defense, medical, and industrial composite components based in Orange City, IA (www.quatrocomposites.com). Quatro supplies several of top aerospace platforms, including the Boeing 787, Gulfstream G650 and Insitu X300, and Quatro’s largest customers include Boeing, Gulfstream, Insitu and United Technologies.

“AIM Aerospace is an integrated and diversified composite supplier with an innovative approach and proven track record on delivering a range of full-service solutions for the commercial and military aircraft and engine markets,” said Rowan Taylor, Liberty Hall’s founding and managing partner.  “Over the past three years through our partnership with AIM Aerospace, the company has expanded its capabilities, diversified its customer base and extended its geographic reach.  AIM Aerospace is now leading the way in the implementation of advanced thermoplastics and intelligent automation for aerospace in North America.  As demand for composite components continues to increase, we are pleased that AIM Aerospace is well-positioned to deliver a new generation of complex products to the industry.  We are very proud to transfer leadership to Sekisui to oversee the next chapter in AIM Aerospace’s expansion.”

“With the support of Liberty Hall, AIM Aerospace has grown stronger in the past three years by extending its leadership position in manufacturing of complex thermoplastic aerospace components, growing its customer base, and entering the engine composites segment of the market,” said Taylor Catarozoli, a partner at Liberty Hall. “AIM Aerospace has demonstrated an ability to deliver innovative solutions to complex problems as one integrated platform, and we applaud the company’s leadership, led by Daniele Cagnatel, for their work in transforming the company and creating new opportunities.”

Liberty Hall invests exclusively in businesses serving the aerospace and defense industry and complementary industrial end markets. The firm was founded in July 2011 and is headquartered in New York (www.libertyhallcapital.com).

Sekisui Chemical (OTCMKTS: SKSUF), the buyer of AIM, is a manufacturer of high-performance plastics for the medical, automotive, and information technology industries; and also provides residential housing construction. The buy of AIM is the largest acquisition ever made by Sekisui Chemical and will expand the company’s presence in the carbon fiber composites market and will increase sales of its thermoplastic resin materials for aircraft components. The company was founded in 1947 and is headquartered in Osaka, Japan (www.sekisuichemical.com).

Lincoln International was the financial advisor to Liberty Hall.

Closing of this transaction is expected by the end of the fourth quarter of 2019.

© 2019 Private Equity Professional | June 17, 2019