aerospace

Trive Forms Karman Missile & Space

January 28, 2021 by John McNulty

Trive Capital has formed Karman Missile & Space Systems in partnership with the senior management teams of Aerospace Engineering Corp. (AEC) and AMRO Fabricating Corporation.

Karman Missile & Space Systems provides design, engineering, precision machining, large part forming, thermal coating, and sub-assembly services of flight hardware and complex sub-assemblies used in space, missile, interceptor and hypersonic applications.

Some of Karman’s products include engine nozzles, nose cones, iso and ortho-grid body panels, titanium attachment hardware, and heat shields. Isogrid panels are partially hollowed-out structures usually formed from a single metal plate with triangular stiffening ribs. Orthogrid panels are similar but instead use rectangular stiffening ribs.

Karman has facilities near Los Angeles in Brea (Aerospace Engineering) and South El Monte (AMRO Fabricating), California; and a project management facility in Huntsville, Alabama.

Aerospace Engineering was acquired by Trive in August 2020, while the formation of Karman and the buy of AMRO (the name stands for “A Michael Riley Operation”) closed separately. According to Trive, Karman is now one of the largest independently owned manufacturers and suppliers of complex systems to the aerospace and defense sectors.

“Karman is well-positioned to benefit from rapidly increasing demand for space launch, missile defenses, and hypersonic weapon technologies with substantial content on the leading platforms currently in development,” said David Stinnett, a partner at Trive. “Both AEC and AMRO have established outstanding reputations for high quality and on-time delivery on the most intricate, difficult to manufacture flight hardware and assemblies. We share management’s vision for creating a full-service supplier for these markets and anticipate significant investment to support the capabilities and capacity demanded by customers both now and in the years to come.”

The senior leadership teams of both businesses, including Mike Riley, the former owner of AMRO, and Mark Mahboubi, the former owner of AEC, will continue as equity holders and executives at Karman with Mr. Riley holding the position of chief executive officer and Mr. Mahboubi as chief technology officer.

“We are excited to form this new partnership with the collective vision to build an integrated supplier of flight hardware and assemblies for the space and missile markets,” said Mr. Riley. “Working collaboratively with Trive and AEC will allow us to continue growing with our customers, investing in new capabilities and adding capacity to alleviate current supply chain constraints. Our goal is to build the preeminent Tier 1 systems integrator to the space sector, in a historically fragmented market.”

Trive invests from $10 million to $150 million of debt or equity in North America-headquartered companies with revenues of $40 million to $1.5 billion. The firm is industry-agnostic but has specific experience across a range of sectors including aerospace and defense, automotive, building products, business services, chemicals, and consumer goods. The firm was founded in 2012 by Conner Searcy and Chris Zugaro and is based in Dallas.

D.A. Davidson was the financial advisor to the shareholders of Aerospace Engineering, and KAL Capital Markets was the financial advisor to the shareholders of AMRO Fabricating.

Artemis Closes Adcole Maryland Exit

May 1, 2020 by John McNulty

Artemis Capital Partners has closed the sale of Adcole Maryland Aerospace to AE Industrial Partners.

Adcole Maryland Aerospace (AMA) is 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.

Artemis acquired Adcole in May 2014 and in April 2017 spun out the company’s aerospace division and merged it with Maryland Aerospace to form Adcole Maryland.

“We’re very proud of what we have accomplished in partnership with the talented AMA team,” said Peter Hunter, the founder and managing partner of Artemis. “As a result of the company’s industry-recognized commitment to innovation and quality, AMA is uniquely well-positioned to meet the growing demand for high reliability, mission-critical satellite components and subsystems.”

Artemis Capital Partners invests in companies with revenues of $5 million to $50 million and EBITDA of $1 million to $10 million. Sectors of interest include manufacturers of differentiated industrial technologies, including aerospace, automotive, defense, energy, industrial automation, scientific and research, and medical sectors. The firm was founded in 2010 and is based in Boston.

“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 AE Industrial Partners. “AMA represents the first company for our 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 AE Industrial Partners 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.

Mesirow Financial was the financial advisor to Artemis Capital Partners on this transaction.

Private Equity Professional | May 1, 2020

AE Industrial Buys Atlas from Graham

October 10, 2018 by John McNulty

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.

AIP to Acquire Vertex Aerospace

May 2, 2018 by John McNulty

Publicly-traded L3 Technologies has agreed to sell its Vertex Aerospace business to American Industrial Partners for $540 million in cash. The sale of Vertex includes its Crestview Aerospace and TCS business units.

Vertex Aerospace provides aviation logistics services, supply chain management, and maintenance, repair and overhaul services. Crestview Aerospace is a fabricator and assembler of rotary aircraft components and TCS provides aviation-related engineering services and logistics support. The combined business serves the US Department of Defense, including the Air Force, Navy, Army, Marine Corps, Customs Service, and Drug Enforcement Administration.

Vertex Aerospace was founded in 1977 as the product support division of the Beechcraft Company and was purchased by Raytheon in 1980 and renamed Raytheon Aerospace. L3 acquired the business from Raytheon in 2003. Today the company is headquartered north of Jackson in Madison, MS. Click HERE for the Vertex website.

American Industrial Partners makes equity and debt investments in North American-headquartered industrial companies that have revenues from $100 million to $750 million. Transaction values are typically less than $500 million. The firm was founded in 1989 and is headquartered in New York (www.americanindustrial.com).

L3 Technologies (NYSE:LLL) is a provider of a range of communication, electronic and sensor systems used on military, homeland security and commercial platforms. In 2017 the company had revenues of $9.6 billion and approximately 31,000 employees. L3 is headquartered in New York (www.l3t.com).

Moelis & Company was the financial advisor to L3.

Closing of this transaction is expected during the summer of 2018.

IGP Exits FMH Aerospace

February 2, 2018 by John McNulty

Industrial Growth Partners (IGP) has sold FMH Aerospace, a manufacturer of aerospace components and assemblies, to publicly-traded AMETEK for $235 million. IGP acquired FMH though its fourth fund in May 2015.

FMH is a manufacturer of components and assemblies for the commercial aerospace, defense, and space industries. The company’s products include metal bellows, bellow joints, metal ducting and metal hoses that are used to transfer fluids and gases that are at extreme temperatures and pressures and in demanding environments. For example, the company’s products are used in the hot section of engines or at cryogenic temperatures in rocket engine applications. FMH has annual sales of approximately $50 million and is headquartered in Irvine, CA (www.fmhaerospace.com).

“IGP’s support of our company as it transitioned from a family-run business to an institutionally-backed enterprise was crucial,” said Rick Busch, CEO of FMH. “They were an ideal partner as we went through the process of expanding the senior management team, investing in key manufacturing processes and implementing a business operating system for continuous improvement initiatives. Ultimately, these initiatives enabled us to more than double EBITDA during our partnership with IGP.”

Industrial Growth Partners invests in North American-based manufacturing and manufacturing services companies that have histories of profitability and revenues of up to $250 million. The firm was founded in 1997 and is based in San Francisco (www.igpequity.com).

“FMH is a high-quality acquisition for our Thermal Management Systems businesses with excellent positions across a number of attractive aerospace and defense platforms,” said David Zapico, AMETEK Chairman and Chief Executive Officer. “Its proprietary products and solutions further broaden our differentiated product offering serving these markets.”

AMETEK is a global manufacturer of electronic instruments and electromechanical devices with annual revenues of more than $4 billion. The company consists of two operating groups: Electronic Instruments and Electromechanical Products. FMH Aerospace will become part of AMETEK’s Electromechanical Products group. AMETEK is headquartered in Berwyn, PA (www.ametek.com).

Arlington Buys Cadence from Court Square

November 17, 2017 by John McNulty

Arlington Capital Partners has acquired Cadence Aerospace from Court Square Capital Partners.

Cadence Aerospace was acquired by Court Square in May 2012 and is a supplier of components, subassemblies and assemblies to manufacturers of aircraft, aerostructures, aeroequipment, engine, and other commercial aerospace and defense platforms. The company has specific capabilities with difficult-to-machine geometries, hard metal alloys, and very large aerostructures.

Customers of Cadence are major OEMs and Tier 1 suppliers and include Boeing, Airbus, Northrop Grumman, Fokker, Lockheed Martin, United Technologies, FACC, Honeywell and Spirit. Cadence has operations in California, Arizona, Washington, Massachusetts and Mexico and is headquartered in Anaheim, CA (www.cadenceaerospace.com).

“Cadence’s robust set of manufacturing capabilities, customer relationships and favorable exposure to key growth platforms collectively present a compelling investment opportunity,” said Peter Manos, a Managing Partner at Arlington Capital. “Cadence stands to benefit from supply chain consolidation given its unique scale and capabilities as customers look to larger, more established industry players to drive manufacturing efficiencies, quality, and design innovation.”

Arlington invests in buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include government services and technology; aerospace and defense; healthcare; and business services and software. Arlington is investing out of its fourth fund which closed in July 2016 with $700 million of capital. The firm is based in Chevy Chase, MD (www.arlingtoncap.com).

“We are excited to partner with Arlington, a private equity firm with a successful history in the aerospace sector, to capitalize on the multitude of opportunities available to the company in our current end markets,” said Ron Case, CEO of Cadence. “Through a growth strategy that includes both organic capital investments and acquisitions, we are focused on creating value for our customers and employees alike.”

Court Square, the seller of Cadence, invests in middle market companies that are active in the business services, general industrials, healthcare, and technology/telecommunications sectors. Court Square is based in New York (www.courtsquare.com).

Lazard was the financial advisor to Cadence on this transaction.

Greenbriar Acquires Whitcraft

April 5, 2017 by John McNulty

Greenbriar Equity Group has acquired The Whitcraft Group, a maker of aerospace components, from Linsalata Capital Partners which first invested in the company in December 2010.

The Whitcraft Group is a manufacturer of precision formed, machined, and fabricated flight-critical aerospace components. The company’s products include air seals, bracket assemblies, heatshields, retaining rings, inlet covers, rolled ring air seals, snap rings, flanges, tail cones, transition ducts, manifold assemblies and other products. Whitcraft’s blue-chip customer base includes every major aero-engine OEM and Tier I supplier, with content on over 100 turbine engines and platforms. The company is a manufacturing partner with Pratt & Whitney, GE Aviation, Honeywell, UTC Aerospace Systems, Sikorsky, Rolls-Royce, and the US Government. Whitcraft was founded in 1960 and is based in Eastford, CT (www.whitcraftgroup.com).

“We are proud to partner with Whitcraft to help continue their long-term track record of growth. Whitcraft’s differentiated capabilities and superb management team provide a unique platform for continued growth in the aerospace engine market,” said Noah Roy, a Managing Partner at Greenbriar.

Greenbriar Equity Group invests from $50 million to $150 million per transaction in the global transportation industry, including companies in aerospace & defense, automotive, freight & passenger transport, logistics & distribution, and related sectors. The firm manages $2.5 billion of committed capital and is based in Rye, NY (www.greenbriarequity.com).

“Greenbriar is an experienced investor in aerospace whose partnership and support will enhance Whitcraft’s ability to execute on the opportunity created by the unprecedented growth currently taking place in our industry,” said Colin Cooper, Whitcraft’s CEO.

Linsalata Capital Partners, the seller of Whitcraft, invests from $10 million to $50 million of equity in middle market companies that have $7 million to $50 million of EBITDA and at least $300 million in enterprise value. The firm was founded in 1984 and is based near Cleveland in Mayfield Heights, OH (www.linsalatacapital.com).

KRG Sells PAS to StandardAero

March 30, 2017 by John McNulty

KRG Capital Partners has agreed to sell its portfolio company PAS International to StandardAero Holdings, a portfolio company of Veritas Capital since July 2015.

PAS Technologies is a provider of engine and airframe component repairs, coating services (for high-wear, high-heat and highly corrosive environments), and new parts manufacturing for the commercial and military aerospace, industrial gas turbine, and oil and gas markets. The company is headquartered in Kansas City, MO (www.pas-technologies.com).

“Through organic capital investment and strategic initiatives, our partnership with KRG allowed us to strengthen our ‘one stop shop’ capabilities that includes both manufacturing and a full set of special processes in order to enhance our value proposition to some of the world’s leading OEMs,” said Tom Hutton, PAS CEO. “We thank KRG for their support and are excited about continuing to execute our growth strategy as part of StandardAero.”

StandardAero is one of the world’s largest independent providers of aircraft engine MRO services including engine and airframe maintenance, repair and overhaul, engine component repair, engineering services, interior completions and paint applications. The company serves an array of customers in business and general aviation, airline, military, helicopter, components, energy and VIP completions markets. StandardAero is headquartered in Scottsdale, AZ with facilities in the US, Canada, Europe, Singapore and Australia (www.standardaero.com).

The sale of PAS, acquired by KRG in October 2010, represents the 11th exit in KRG’s $1.96 billion Fund IV which closed in November 2007. “We have really enjoyed working with the PAS management team. They have done an excellent job of improving the company’s plant-level capabilities and in the process enhancing PAS’ reputation for on-time service and leading-edge quality control,” said Chuck Hamilton, a Managing Director of KRG. “PAS is a great fit with StandardAero and we are confident the PAS team will enjoy continued success with their new strategic partner.”

KRG Capital specializes in acquiring and recapitalizing unique and profitable middle-market companies that have from $10 million to $100 million or more of EBITDA. Founded in 1996, KRG has $4.4 billion of capital under management and is based in Denver (www.krgcapital.com).

Veritas Capital invests in companies active in the aerospace & defense, healthcare, technology, national security, communications, energy and education sectors. The firm is headquartered in New York (www.veritascapital.com).

Houlihan Lokey (www.HL.com) and Alantra (www.alantra.com) were the financial advisors to PAS on this transaction.

McNally Invests in Avionics Maker

October 25, 2016 by John McNulty

McNally Capital has made an investment in Genesys Aerosystems, a provider of avionics systems for military and civil aircraft manufacturers and operators. Genesys’ existing management team will retain a majority interest in the company.

Genesys Aerosystems’ products include 3D Synthetic Vision Electronic Flight Instrument Systems, S-TEC Analog and Digital Autopilots, HeliSAS Helicopter Autopilot and Stability Augmentation System, as well as other sensors and components. The company offers its systems as stand-alone components or integrated to provide entire cockpit solutions. Genesys Aerosystems, led by President and CEO Roger Smith, is headquartered west of Dallas in Mineral Wells, TX (www.genesys-aerosystems.com).

“We have partnered with McNally Capital because of their tremendous expertise, track record of partnering with management teams to drive growth, and capital resources. We believe they are the best partners to help grow our business over the long term,” said Mr. Smith.

“We are excited to partner with the Genesys management team in support of their strategy to expand their offerings, build additional capabilities, and grow the business,” said Ward McNally, Managing Partner at McNally Capital. “Our partnership with the Genesys management team is consistent with our strategy of partnering with the owners and managers of high quality businesses to help them achieve their long term growth objectives.”

McNally Capital works with family offices to help them make and manage their investments in private companies and private equity funds. The firm also acts as a principal investor and can partner with high net worth family offices to invest in companies with EBITDA’s from $2 million to $25 million. Sectors of interest include industrials, food, packaging, distribution, logistics, consumer and healthcare. McNally Capital is based in Chicago (www.mcnallycapital.com).

“Genesys has established a leadership position within numerous avionics segments by developing innovative and customizable solutions that address critical customer needs. By continuing to invest in its offerings, Genesys is well positioned to expand its unique technologies and product portfolio,” added Brett Mitchell, a Principal at McNally Capital.

Odyssey Acquires Aero Precision

August 26, 2016 by John McNulty

Odyssey Investment Partners has acquired Aero Precision Industries, a subsidiary of Greenwich AeroGroup, which is a portfolio company of Berkley Capital.

Aero Precision is a distributor of OEM aerospace parts for the military aftermarket. Customers include foreign militaries, MRO facilities and the US government. The company supplements its military parts distribution business with brokered repair services as well as with parts distribution within the commercial aviation and space markets. Aero Precision, led by its president Frank Cowle, is headquartered east of San Francisco in Livermore, CA with additional locations in San Francisco, Austin, and Tokyo (www.aeroprecision.com).

Greenwich AeroGroup provides aviation services, including MRO, CRO (component repair and overhaul), parts distribution and manufacturing services for business, commercial and military aircraft. The company acquired the operations that comprise Aero Precision in 2009 (DAC International and NASAM) and 2013 (Aero Precision). Greenwich AeroGroup is based in Wichita (www.greenwichaerogroup.com).

Odyssey Investment Partners makes control investments in middle-market companies in a variety of industries including industrial manufacturing; business, financial and healthcare services; aerospace products; and localized and route-based service businesses. The firm has approximately $4 billion of capital under management and has offices in New York and west of Los Angeles in Woodland Hills, CA (www.odysseyinvestment.com).

Berkley Capital is the private equity investment vehicle of W. R. Berkley Corporation, a Fortune 500 property and casualty insurance company. The firm makes both buyout and growth equity investments. Typical buyout investments will have EBITDAs from $5 million to $25 million and require equity investments of $10 million to $75 million. Growth equity investments can be as small as $5 million. Sectors of interest include financial, healthcare, aviation and business services. The firm is based in Miami (www.berkleycapital.com).

BlackArch Partners was the financial advisor to Berkley Capital. BlackArch was founded in 2010 by Kelly Katterhagen, Matt Salisbury, Drew Quartapella, and Bram Hall. The firm is headquartered in Charlotte with an additional office in Houston (www.blackarchpartners.com).

Liberty Hall Buys ZTM

August 9, 2016 by John McNulty

Accurus Aerospace, a portfolio company of Liberty Hall Capital Partners, has acquired ZTM, a Tier II supplier of large, complex metallic parts and assemblies used in aerospace applications.

ZTM supplies several Boeing commercial aerospace platforms, including the 737 and 787 and lists both Boeing and Spirit AeroSystems as among its largest customers. ZTM was founded in 1989 by Brad Julius and has a 131,000 sq. ft. operating and headquarters facility in Wichita (www.ztm.com).

Accurus Aerospace was formed as a platform company by Liberty Hall in November 2013. Since its formation, Accurus has completed four other add-on acquisitions: Precise Machining & Manufacturing (November 2013); McCann Aerospace Machining (March 2014); LaCroix Industries (July 2015); and J&M Machine (June 2016). Accurus Aerospace is headquartered in Tulsa (www.accurusaero.com).

“The addition of ZTM marks the fifth acquisition for Accurus and a critical step forward as we execute our strategy to build a diversified Tier II aerostructures supplier,” said Rowan Taylor, Liberty Hall’s founding Partner. “ZTM not only expands Accurus’ content on the key 737 and 787 platforms, reinforces our strong relationships with our largest customers and extends Accurus’s geographic presence into Wichita, but also provides Accurus with proven capabilities for delivery of large complex assemblies.”

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

Philadelphia-based Hamilton Lane (www.hamiltonlane.com) is a co-investor in Accurus Aerospace.

Financing for the buy of ZTM was provided by Bank of America Merrill Lynch (www.baml.com) and Citizens Bank (www.citizensbank.com).

AE Acquires Moeller Aerospace

July 13, 2016 by John McNulty

AE Industrial Partners (AEI) has acquired Moeller Aerospace. The buy of Moeller Aerospace is AEI’s fourth platform investment for its first fund, AE Industrials Partners Fund I, which closed in April 2016 with $680 million in commitments.

Moeller Aerospace specializes in the machining of complex hot- and cold-section turbine hardware that are used in major aerospace engine programs. Products include small items such as bladelocks, brackets, blades, vanes, housings and manifolds. The company specializes in the machining of titanium-aluminide (an inter-metallic compound that is lightweight and resistance to oxidation and corrosion at high operating temperatures). Moeller Aerospace has approximately 600 employees and 215,000 sq. ft. of manufacturing capacity in three facilities – two near Detroit in Wixom, MI and the other in the northern Michigan city of Harbor Springs. The company was founded in 1953 and is headquartered in Wixom, MI (www.moeller-aerospace.com).

“AEI has an extensive, successful track record in our key target markets of aerospace, power generation and specialty manufacturing,” said Kevin Atkinson, President of Moeller Aerospace. “There’s no doubt that with the infusion of AEI’s expertise, connections and capital, our company will have significant new business potential to develop and realize.”

AEI invests in the aerospace, 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. AEI is headquartered in Boca Raton (www.aeroequity.com).

“Moeller Aerospace is virtually unique in its products, technology, and reputation,” said Michael Greene, Managing Partner of AEI. “The company is a proven innovator in developing new products and processes that support the development and production of turbine engines for their key OEM customers, and has the potential to expand this expertise across its target markets.”

Kirkland & Ellis (www.kirkland.com) was the legal advisor to AEI and PricewaterhouseCoopers (www.pwc.com) was the firm’s financial advisor.

Honigman Miller Schwartz and Cohn (www.honigman.com) was the legal advisor to Moeller Aerospace and P&M Corporate Finance (www.pmcf.com) was the company’s financial advisor.

Liberty Hall Buys J&M Machine

June 23, 2016 by John McNulty

Accurus Aerospace, a portfolio company of Liberty Hall Capital Partners, has acquired J&M Machine, a Tier II supplier of machined metallic parts and assemblies used in aerospace applications.

Accurus Aerospace was formed as a platform company by Liberty Hall in November 2013. Since its formation, Accurus has completed three acquisitions: Precise Machining & Manufacturing (November 2013); McCann Aerospace Machining (March 2014); and LaCroix Industries (July 2015). J&M will be integrated into the LaCroix Industries division of Accurus.

LaCroix supplies several Boeing commercial aerospace platforms, including the 737, 777 and 787. In addition to expanding Accurus’s content on these aircraft platforms, J&M diversifies Accurus’s customer mix and expands Accurus’s geographic presence in the Pacific Northwest, the core aerospace supply region in the United States.

“The acquisition of J&M provides Accurus with new high-precision machining capabilities inside our LaCroix division, expands our relationship with The Boeing Company and substantively expands Accurus’s geographic presence in the Northwest,” said Rowan Taylor, a partner at Liberty Hall. “The addition of J&M marks the fourth acquisition for Accurus as we continue to execute our strategy to build a leading, fully capable, diversified Tier II aerostructures supplier.” Accurus Aerospace is headquartered in Tulsa (www.accurusaero.com).

Philadelphia-based Hamilton Lane (www.hamiltonlane.com) is a co-investor in the Accurus Aerospace platform.

Financing for the buy of J&M Machine was provided by Bank of America Merrill Lynch (www.baml.com), which provided financing for the formation of the Accurus Aerospace platform in November 2013.

Seattle-based investment bank Meridian Capital (www.meridianllc.com) was the financial advisor to J&M Machine.

Liberty Hall Acquires Bromford Industries

March 17, 2016 by John McNulty

Aerospace and defense focused Liberty Hall Capital Partners has acquired Bromford Industries from Darwin Private Equity. Darwin acquired Bromford in August 2009 from Hampson Industries.

Bromford Industries is a supplier of engine components, fabrications and assemblies and landing gear components that are used in the aerospace and power generation industries. The company’s largest customers include GE, Messier-Buggatti-Dowty, Rolls Royce, Siemens and Snecma. Bromford has 275 employees and annual revenues of approximately £30 million ($43 million). Bromford’s existing management team, led by Gary Lowe, CEO, will remain in their roles following the acquisition. The company operates facilities in three UK locations – Birmingham (headquarters), Alcester and Leicester (www.bromfordindustries.co.uk)

Liberty Hall plans to use Bromford as a platform investment in order to build a diversified engine component supplier to the aerospace and power generation industries through both organic growth and add-on acquisitions. “We look forward to Bromford creating significant strategic value by adding complementary capabilities, diversifying across customers and expanding content on the highest value platforms through organic investments and strategic acquisitions,” said Rowan Taylor, Liberty Hall’s founding Partner.

Liberty Hall Capital Partners invests exclusively in businesses serving the aerospace and defense industry. The firm was founded by Mr. Taylor in July 2011 and is headquartered in New York (www.libertyhallcapital.com).

“As the commercial aerospace industry continues to enjoy long-term secular growth, one of the highest growing segments of the industry is demand for next generation fuel efficient engines,” said Mr. Taylor. “Bromford is a leading supplier to this segment with an impressive roster of customers, differentiated capabilities and a proven history of customer service. Bromford represents an ideal platform from which to build a fully-integrated, diversified engine component supplier.

Bromford is Liberty Hall’s third platform acquisition. Last month, the firm acquired AIM Aerospace, a supplier of composite parts used in the commercial aerospace industry, for $200 million. In November 2013, Liberty Hall formed Accurus Aerospace, a fully-integrated Tier II aero-structures supplier. Since its formation, Accurus has completed three strategic acquisitions: Precise Machining & Manufacturing (2013), McCann Aerospace Machining (2014) and LaCroix Industries (2015).

Financing for the acquisition was provided by Royal Bank of Scotland Asset Based Lending. Bromford was advised by PwC Corporate Finance.

AE Industrial Acquires The Aircraft Group

March 2, 2016 by John McNulty

AE Materials Group, a portfolio company of AE Industrial Partners, has acquired The Aircraft Group, a provider of consulting services for the purchase, sale or leasing of commercial aircraft.

The Aircraft Group (TAG) provides its customers with the financial, technical and documentation requirements associated with buying, selling and leasing commercial aircraft. The company’s pitch line is “Every aircraft has a paper trail, only The Aircraft Group can handle it.” The company’s core services include engine inspections, technical analysis, aircraft import/export services, lease returns, certification, and economic evaluations. TAG was founded in 1990 by Walter Andrushenko and is headquartered in Phoenix (www.theaircraftgroup.com).

“Over the last 25 years, TAG has built a reputation advising owners of aircraft assets through the technical capability of its team,” said Jeff Lund, CEO, AE Materials Group (AEMG). “We are extremely excited to partner with Wally and the rest of the TAG team to expand our service capabilities to our customer base.” AEMG is an aerospace aftermarket company that provides new parts, surplus material, repair and overhaul, and other technical services to airlines, MROs and lessors.

“AEMG is a perfect fit for us, and will enable TAG to expand its services and increase its market presence,” said Mr. Andrushenko. “The timing is right for our company to move forward with AEMG, especially with the growing demand for our array of services from the global aircraft industry.”

AE Industrial Partners (AEI) invests in the aerospace, 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. AEI is headquartered in Boca Raton (www.aeroequity.com).

Alvarez & Marsal (www.alvarezandmarsal.com) served as financial advisor to AEI and Buckingham, Doolittle & Burroughs (www.bdblaw.com) served as legal advisor.

Liberty Hall Acquires AIM Aerospace

February 3, 2016 by John McNulty

Liberty Hall Capital Partners, a specialist investor in the aerospace and defense industries, has acquired AIM Aerospace, a supplier of composite parts used in the commercial aerospace industry, for $200 million. Co-investing on this transaction with Liberty Hall are 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 closets, lavatories, overhead stowage bins, crew rest modules, seat furniture, flight deck doors, and class dividers/partitions, among others. Customers include Boeing (737, 777 and 787 platforms), Kawasaki Heavy Industries, Spirit AeroSystems and B/E Aerospace. The company was founded in 1988 as part of the UK-based AIM Group PLC. Today, AIM Aerospace has more than 1,000 employees and is headquartered south of Seattle in Renton, WA. AIM has additional facilities in Auburn and Sumner, WA. AIM’s existing management team, led by John Feutz, President, will remain in their roles following the acquisition (www.aim-aerospace.com).

Liberty Hall intends to use AIM Aerospace as a platform to build a fully-integrated, diversified composites supplier through both organic growth and acquisitions. “The commercial aerospace market continues to enjoy strong, long-term secular growth, driven by demand for next generation aircraft,” said Rowan Taylor, Liberty Hall’s founding Partner. “With this unprecedented growth in aircraft deliveries, aircraft manufacturers are increasingly transitioning from metallic to composite materials that provide weight savings and other beneficial properties that increase fuel efficiency and durability.”

Liberty Hall Capital Partners invests exclusively in businesses serving the global aerospace and defense industry. The firm was founded by Mr. Taylor in July 2011 and is headquartered in New York (www.libertyhallcapital.com).

“As a private equity firm focused only on the aerospace and defense industry, we see significant opportunities in this segment of the industry and believe that AIM Aerospace possesses an ideal combination of capabilities, customer relationships and a proven track record of success,” said Mr. Taylor. “The growing demand for composites provides an opportunity for AIM to serve as the platform investment for Liberty Hall to build a fully-integrated, diversified composites supplier.”

AIM Aerospace represents Liberty Hall’s second platform acquisition. In November 2013, Liberty Hall formed Accurus Aerospace, a fully-integrated Tier II aero-structures supplier. Since its formation, Accurus has completed three add-on acquisitions with the buys of Precise Machining & Manufacturing (2013), McCann Aerospace Machining (2014) and LaCroix Industries (2015).

Financing for the AIM acquisition was arranged by Antares Capital (www.antarescapital.com), Citizens Bank (www.citizensbank.com) and KeyBanc Capital Markets (www.key.com). A second lien financing facility was arranged by Carlyle GMS Finance (www.carlyle.com). Legal advice to Liberty Hall was provided by Schulte Roth & Zabel (www.srz.com).

AIM’s advisor was Lincoln International (www.lincolninternational.com). Legal advice was provided by Stephenson Harwood (www.shlegal.com) and Riddell Williams (www.riddellwilliams.com).

Arlington Capital Sells MB Aerospace to Blackstone

December 18, 2015 by John McNulty

Arlington Capital Partners has sold MB Aerospace, a Tier I engine component manufacturer and repair business, to Blackstone. Arlington Capital first invested in the company in April 2013.

MB Aerospace is a provider of engineered components – complex rings, casings and other engine parts – for the commercial and military aero-engine and industrial gas turbine markets. Customers include Pratt & Whitney, Rolls-Royce, General Electric, Boeing, United Technologies Aerospace Systems, Mitsubishi Heavy Industries, and the US Department of Defense. The company is led by its CEO Craig Gallagher who has held the position since 2003. MB Aerospace has facilities in the US, UK, and Poland and is headquartered near Glasgow in Motherwell, UK (www.mbaerospace.com).

During Arlington Capital’s term of ownership MB Aerospace acquired two businesses. In April 2014 the company acquired Norbert Industries, an aero-engine component manufacturing business based in Sterling Heights, MI; and in June 2013 acquired Delta Industries, an aero-engine component manufacturing business based in Hartford, CT.

“MB Aerospace has been a blueprint investment for Arlington Capital. We partnered with an outstanding management team to be an early consolidator in a large and rapidly growing market with a differentiated product offering and together, we have built one of the largest independent pure-play aero-engine component manufacturers,” said Peter Manos, a Managing Partner at Arlington Capital Partners.

Arlington Capital Partners has $1.5 billion of committed capital and invests in buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include government services and technology, aerospace & defense, healthcare, and business services & software. MB Aerospace will be the fourth exit for Arlington Capital in the last twelve months and continues an active year for the firm which also made three new platform investments. Arlington Capital is based in Chevy Chase, MD (www.arlingtoncap.com).

“Our partnership with Arlington Capital has been a tremendous success for both MB Aerospace and Arlington Capital,” said Mr. Gallagher. “Arlington Capital has provided substantial capital to help us grow, while allowing us to leverage their network of industry experts, deep sector knowledge and other resources to accelerate MB Aerospace on its path to record sales.”

Blackstone, the buyer of MB Aerospace, is one of the world’s largest investment and advisory firms. The firm’s alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-focused funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Blackstone’s private equity business in total manages more than $91 billion in equity as of the end of the third quarter 2015. Blackstone is headquartered in New York (www.blackstone.com).

Morgenthaler Acquires B&E Group

November 19, 2015 by John McNulty

Morgenthaler Private Equity (MPE) has acquired the B&E Group, a manufacturer and service provider to the commercial, defense, and aerospace industries.

MPE partnered on this transaction with B&E Group’s existing shareholders and senior management team, including CEO John Wilander and COO Paul Tobias, both of whom will serve as members of the company’s Board of Directors.

B&E Group is a manufacturer of machined components used by OEMs in the commercial aerospace, military and space industries, and is also a provider of maintenance, repair and overhaul services for commercial aerospace engine components. The company is headquartered in Southwick, MA and Fort Myers, FL (www.bandepac.com) (www.bandeacr.com).

“We are very impressed with B&E Group’s engineering expertise and capabilities to machine exotic materials to tight tolerances. We also appreciate the company’s technical service and repair capabilities. B&E Group fits squarely within MPE’s focus on entrepreneur-owned, high value manufacturing companies,” said Peter Taft, a Partner at MPE.

MPE invests in companies in the lower middle market that have transaction values up to $150 million and EBITDAs between $5 million and $20 million. Sectors of interest include high-value manufacturing and proprietary business services. The firm has $3 billion of capital under management and has offices in Cleveland and Boston (www.morgenthaler.com).

“In addition to a number of organic growth opportunities, B&E Group will seek complementary add-on acquisitions for each of its operating divisions,” said Charlie Rossetti, a Vice President at MPE.

Twin Brook Capital Partners – the middle market direct lending subsidiary of Angelo, Gordon & Co. – provided financing to support the transaction (Twin Brook website).

“MPE’s experience with highly engineered components, relevant industry knowledge and ability to work with entrepreneur-owned companies make them an ideal partner for B&E Group,” said Mr. Wilander.