aerospace

Nautic Acquires Aerostar Aerospace

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Nautic Partners has acquired Aerostar Aerospace Manufacturing in partnership with the company’s management team. Aerostar is a manufacturer of machined parts used in commercial aircraft, primarily in engines and in auxiliary power units.

Aerostar is active in manufacturing high-complexity parts using difficult to work with materials such as titanium, Inconel, (an alloy of nickel containing chromium and iron) and other hard-metal alloys. Aerostar has long-term contractual relationships with several Tier-I and Tier-II aerospace customers, and manufactures and services parts for some of the largest and most rapidly growing platforms in commercial aerospace.  The company was founded in 1983 and is headquartered in Phoenix (www.aerostaraerospace.com).

“The outlook for the commercial aerospace market is attractive, yet the supply chain for critical machined components remains quite fragmented,” said Chris Pierce, a Managing Director of Nautic. “Aerostar is a company with strong operations, good platform exposures, in-demand capabilities, and a blue chip customer base. This company is well-positioned to benefit from and drive consolidation in the space.”

Nautic Partners is a middle-market private equity firm with over $3 billion of equity capital under management. Nautic targets majority equity investments of $25 million to $75 million. Sectors of interest include industrial products, outsourced services, and healthcare. The firm was founded in 1986 and is headquartered in Providence, RI (www.nautic.com).

“In Nautic, we have found a partner who shares our values, and who will provide Aerostar with the resources it needs to grow far into the future,” said Brandon McDermott, CEO of Aerostar. “I am very proud of Aerostar’s talented management team and employees, and I expect an excellent partnership with Nautic.”

As part of Nautic’s investment in Aerostar, the company will expand to a new 55,000 sq. ft. facility and acquire state of the art equipment that will nearly double production capacity over the next few years.  “We look forward to working with the Aerostar team to build a larger business both organically and via targeted acquisition efforts,” said Nick Vidnovic, a Senior Associate of Nautic.

Greene Holcomb and Fischer (GHF) was the financial advisor to Aerostar. GHF is active in middle market mergers and acquisitions, private placements and financial advisory services.  Areas of specialization include consumer, food & agribusiness, healthcare, industrial products & services, business & education services, technology, and energy & infrastructure.  The firm has offices in Minneapolis, Phoenix, Seattle and Atlanta (www.ghf.net).

National Bank of Arizona (www.nbarizona.com) provided financing for the transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-29-15

MidOcean Exits Noranco

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MidOcean Partners has reached an agreement to sell aerospace parts maker Noranco to publicly traded Precision Castparts. The firm, along with its co-investor PSP Investments, acquired Noranco in April 2013.

Noranco is a supplier of complex machined and sheet metal components, assemblies, and kits for OEMs and Tier I suppliers in the landing gear, aero-structures, and aero engines markets. The company focuses solely on the aerospace industry, covering commercial/regional jet, business jet and military/rotorcraft markets. Key customers include Honeywell, United Technologies, Bombardier, Safran, Spirit AeroSystems and Boeing.  Noranco sells its products under long term contracts and is a sole source supplier for most of its revenues. The company is headquartered in Toronto (www.noranco.com).

When MidOcean acquired Noranco in April 2013 the firm named Michael Baughan, a MidOcean Executive Board member and former President and COO of B/E Aerospace, as the company’s new Chairman of the Board. MidOcean Chairman Steve Miller and Management Affiliate Ray Valeika also became Directors of Noranco.  In addition to leveraging the experience of these executives to aid in organic growth initiatives, MidOcean completed two add-on acquisitions with the buys of Procesos Termicos in November 2014 and Arnold Engineering in December 2013.

“We are very pleased with this outcome which reflects the successful completion of MidOcean’s strategy to leverage our operating resources to drive growth and operating efficiency,” said Ted Virtue, MidOcean’s CEO.  “Noranco has been a terrific platform to consolidate the highly fragmented aerospace sector and we are proud of the job the Noranco management team and our operating resources have done.”

MidOcean invests in middle market companies active in the business and media services, consumer, and industrial services sectors.  The firm has offices in New York and London (www.midoceanpartners.com).

Mid Ocean’s co-investor partner on this transaction, PSP Investments, is one of Canada’s largest pension managers with $112 billion of assets under management.  PSP invests funds on behalf of the pension plans of the Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. PSP is based in Quebec (www.investpsp.ca).

The buyer of Noranco, Precision Castparts (NYSE: PCP) is an industrial goods and metal fabrication company that manufactures investment castings, forged components, and airfoil castings for use in the aerospace, industrial gas turbine, and defense industries. The company is headquartered in Portland, OR (www.precast.com).

Lazard (www.lazard.com) acted as the exclusive financial advisor to Noranco.

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-28-15

Prospect Partners Acquires EMC Aerospace

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Velocity Aerospace Group, a portfolio company of Prospect Partners, has acquired EMC Aerospace, a provider of aviation maintenance, repair and overhaul services.

EMC operates a state-of-the-art FAA-EASA certified repair station that specializes in the repair of a range of components including power generation, pneumatics, hydraulics, and electromechanical.  Similar to Velocity, EMC serves commercial and regional airlines, corporate business aircraft, and military, municipal, and helicopter markets, both directly and through OEMs and other repair companies. EMC is based in North Miami Beach (www.emcaerospace.com).

“EMC has a superior reputation for customer service support and craftsmanship, and runs one of the most successful and modern accessory shops in the country,” said Velocity CEO Dale Gabel. “As we continue to grow our family of aviation MRO services companies able to address the ‘tip to tail’ needs of airline fleets worldwide, EMC effectively doubles the number of parts we can service and more than doubles the types of problems we can solve. Velocity is strongly positioned to serve today’s fleets as well as the new generation of aircraft coming over the next 10 to 20 years.”

“EMC is a terrific strategic fit for Velocity. Dale and his team are doing a great job executing their vision for the company,” said Maneesh Chawla, a Principal at Prospect Partners.  “In the process, Velocity continues to grow its customer base while expanding the number of services it can offer each customer.”

Velocity Aerospace Group provides aviation MRO services to commercial air transports, corporate business aircraft, regional airlines, and helicopters. The company operates FAA-certified repair stations in California and Florida that offer a range of test, repair, and overhaul services, including capabilities in avionics and in electronic instrumentation. Prospect Partners first invested in Velocity in April 2013.  The company is based Burbank, CA (www.velocityaerospace.com).

EMC is Velocity’s second add-on acquisition.  In April 2014, Velocity acquired E.D.N. Aviation, a manufacturer and servicer of repair and manufacture of backlit control panels.  Velocity continues to seek additional acquisitions of other aviation MRO service businesses based in the United States.

Prospect Partners focuses exclusively on management-led leveraged recapitalizations and acquisitions of niche market leaders with revenues of less than $75 million.  Since 1998, Prospect Partners has invested nationwide in more than 120 companies in a range of niche manufacturing, distribution, and specialty service markets. The firm has $470 million of capital under management and is based in Chicago with an additional office in Menlo Park (www.prospect-partners.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 6-23-15

Odyssey Has Partial Exit at Pexco

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Pexco, a portfolio company of Odyssey Investment Partners, has sold its aerospace business to TransDigm Group for approximately $496 million in cash.  The purchase price includes approximately $160 million of tax benefits to be realized by TransDigm over a 15-year period beginning in 2015. Odyssey acquired Pexco in August 2012 from Saw Mill Capital.

Pexco Aerospace is a maker of extruded plastic interior parts for use in the commercial aerospace industry. Customers include aircraft OEMs, tier 1 interior suppliers and airlines in the aftermarket. The company employs approximately 300 people in two locations in Yakima, WA and Huntington Beach, CA (www.pexco.com/markets/aerospace-defense).

With the sale of its aerospace business, Pexco is now a multi-site extruder of thermoplastic profile, tube and sheet that serves the medical and industrial markets.  Pexco also provides design, prototyping, die building, sub assembly and supply chain management.  The company is based near Atlanta in Alpharetta, GA (www.pexco.com).

“Pexco Aerospace has grown significantly since we acquired its parent company in 2012, reflecting the positive trends in the global aerospace industry,” said Craig Staub, a Managing Principal at Odyssey.  “We are very pleased to complete a transaction that realizes Pexco Aerospace’s attractive value while giving the business a new home as part of a major industry participant that will be a great strategic partner.”

Odyssey 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 in Woodland Hills, CA (www.odysseyinvestment.com).

“We are excited for our future as a provider of plastic components focused on the medical and specialty industrial markets.  “Our businesses are well positioned to capitalize on many attractive growth opportunities and to serve the needs of their strong customer base in these attractive end markets,” said Neil Shillingford, Chief Executive Officer of Pexco.

TransDigm (NYSE:TDG), the buyer of Pexco Aerospace, is a designer, producer and supplier of aircraft components for use on nearly all commercial and military aircrafts in service today. The company was founded in 1993 and is headquartered in Cleveland (www.transdigm.com).

Harris Williams & Co served as the exclusive advisor to Pexco Aerospace. The transaction was led by Jon Nemo, Doug Kinard, Chris Smith and Meghan McGurk from the firm’s Aerospace, Defense & Government Services Group (www.harriswilliams.com).

“Pexco Aerospace is a differentiated aerospace business that fits well with TransDigm’s overall strategy,” said Mr. Nemo.  “This transaction represents another successful investment for Odyssey and supports their strong track record of building leading aerospace companies.”

2015 PEPD • Private Equity’s Leading News Magazine • 5-15-15

Industrial Growth Partners Acquires FMH Aerospace

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Industrial Growth Partners (IGP), in partnership with management and a group of outside investors, has acquired FMH Aerospace, a manufacturer of aerospace components and assemblies.  The acquisition of FMH was made by IGP’s fourth fund and is its eighth platform investment.

FMH is a manufacturer of components and assemblies for the commercial aerospace, defense, space and industrial markets.  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 is headquartered in Irvine, CA (no website found).

IGP intends to use FMH as a platform to pursue add-on acquisitions in the aerospace components and assemblies sector and to grow the revenues of FMH in its existing commercial aerospace, defense, space and industrial markets.

“IGP’s familiarity with the aerospace and defense markets through its current and prior investments and the firm’s successful track record of partnering with entrepreneur-owned businesses make IGP a perfect equity partner for us,” said C. Wayne Fullen, General Manager of FMH.

Industrial Growth Partners provides equity capital to lower-middle market manufacturing and manufacturing services companies with revenues of $30 million to $100 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. Industrial Growth Partners was founded in 1997 and is based in San Francisco (www.igpequity.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-6-15

Trive Capital Acquires Blue Streak Finishers

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Valence Surface Technologies, a portfolio company of Trive Capital, has acquired Blue Streak Finishers, a metal finishing company serving the Pacific Northwest aerospace machining market.  Trive acquired Valence Surface Technologies in October 2013.

Blue Streak Finishers specializes in providing processing and related services for large and complex aerostructures.  The company’s facility is located within 15 miles of several Boeing production sites and offers unique 30 ft. tank capabilities for large monolithic assemblies. Blue Streak is based in Everett, WA (www.bluestreak-finishers.com).

Last month, Valence completed three add-on acquisitions with the buys of Pride Plating, Dynamic Paint Solutions, and Coastline Metal Finishing (Trive Completes Trio of Add-ons for Valence).

“With the addition of Blue Streak, Valence now has an established presence in every key North American aerospace machining hub, which will allow the platform to better serve the needs of the broader supply chain.  As with each of the recent facility acquisitions, Trive is investing further capital to significantly expand capacity and enhance service capabilities in the region for our customers and OEMs,” said David Stinnett, Managing Director at Trive Capital.

Valence Surface Technologies provides specialized metal processing and finishing services to the commercial aerospace, defense, and space & satellite markets.  Valence offers a range of wet and dry processing capabilities for aluminum, titanium, and steel structures. These offerings include: anodizing, plating, shot peening, painting, and non-destructive testing. The company operates eight facilities and is one of the largest independent aerospace & defense metal processors in North America.  Valence is headquartered in Los Angeles (www.valencesurfacetech.com).

“The Blue Streak transaction adds a strategically important region and offers substantial opportunity for growth within the Valence platform,” said Conner Searcy, Managing Partner at Trive Capital.  “We look forward to complementing the acquisition’s strong reputation and long history in the Seattle aerospace market with an operational approach focused on best-in-class technical resources, production systems and facility investment to realize the company’s full potential.”

Trive Capital invests from $10 million to $60 million in North American headquartered companies that have revenues of $30 million to $500 million. Sectors of interest include automotive & transportation; aerospace & defense; building products; construction & infrastructure; consumer goods; energy services; healthcare; manufacturing and industrials; chemicals; distribution; business & professional services; and communications.  Trive, founded in 2012 by Conner Searcy and Chris Zugaro, is currently investing from a $300 million institutional fund raised in 2013.  The firm is based in Dallas (www.trivecapital.com).

2014 PEPD • Private Equity’s Leading News Magazine • 9-18-14

Trive Completes Trio of Add-ons for Valence

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Trive Capital’s portfolio company, Valence Surface Technologies, has completed three add-on acquisitions with the buys of Pride Plating, Dynamic Paint Solutions, and Coastline Metal Finishing.  Trive acquired Valence Surface Technologies in October 2013.

These three acquisitions add key locations, approvals and complementary products offerings to Valence.  In combination, the acquisitions form the largest, independent metal processing platform that is dedicated to streamlining the aerospace supply chain and is capable of servicing the West Coast, Midwest, Oklahoma/Texas and Southeast machining/assembly markets.

Pride Plating is engaged in the processing and sub-assembly of large aluminum and titanium aerostructures, particularly on aircraft with complex contours and/or masking requirements such as the F-35. The company is based outside of Tulsa in Grove, OK (www.prideplating.com).

Dynamic Paint Solutions focuses on commercial and general aviation finishing. The company has a  65,000 square foot facility and over 60 employees.  Dynamic Paint Solutions was founded in 2005 and is based southeast of Macon in Eastman, GA (www.dynamicpaintsolutions.com).

Coastline Metal Finishing specializes in intricate plating and other unique surface treatments on mission critical components utilized in the space/satellite, unmanned-aerial-vehicle, missile and commercial aircraft interior niches. The company is based south of Anaheim in Garden Grove, CA (www.coastlinemetalfinishing.com).

“Trive has completed six transactions during the past nine months to create the Valence organization, with the vision to build a differentiated surface technology platform that provides solutions to challenges faced by the aerospace supply chain,” said Conner Searcy, Managing Partner at Trive Capital.  “The acquisition of these new facilities exemplifies our ability to move quickly and serve as the preferred partner of owner-operators in executing on a shared strategic plan.”

Valence Surface Technologies provides specialized metal processing and finishing services to the commercial aerospace, defense, and space/satellite markets.  Valence offers a range of wet and dry processing capabilities for aluminum, titanium, and steel structures. These offerings include: anodizing, plating, shot peening, painting, and non-destructive testing. The company operates seven facilities and is one of the largest independent aerospace & defense metal processors in North America.  Valence is headquartered in Los Angeles (www.valencesurfacetech.com).

“The addition of the Pride, Dynamic Paint and Coastline Metal provides Valence entrance into critical aerospace machining markets, as well as access to new OEM relationships and technical expertise that will be shared across the enterprise. Valence and Trive will also continue to invest to expand capacity, implement production systems and add services in each location to position the company as an efficient, one-stop offering to its machining customers,” said David Stinnett, Managing Director at Trive Capital.

Trive Capital invests from $10 million to $60 million in North America headquartered companies with revenues of $30 million to $500 million. Sectors of interest include automotive & transportation; aerospace & defense; building products; construction & infrastructure; consumer goods; energy services; healthcare; manufacturing and industrials; chemicals; distribution; business & professional services; and communications. The firm was founded in 2012 by Conner Searcy, Managing Partner, and Chris Zugaro, Partner. Trive Capital is based in Dallas (www.trivecapital.com).

2014 PEPD • Private Equity’s Leading News Magazine • 8-15-14

Vance Street Acquires Eirtech, Forms Aero Platform

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Vance Street Capital has acquired Eirtech Aviation, a provider of aviation coating services. With the closing of the acquisition, Eirtech will be combined with existing Vance Street portfolio companies, Leading Edge Aviation Services and Associated Painters, under a new platform called International Aerospace Coatings. Vance Street Capital acquired Leading Edge in April 2012 and Associated Painters in March 2013.

Eirtech Aviation is a specialist aviation services company providing painting, interior refinishing and graphics to international airlines, private operators and aviation leasing companies predominantly in Europe and the Middle East. The company is headquartered in Shannon, Ireland (www.eirtechaviation.ie).

Leading Edge and sister company, Associated Painters, are OEM, commercial, military and VIP aircraft painting companies.  To date, the companies have refinished nearly 10,000 aircraft and currently refinish over 500 aircraft per year across all locations. The companies are headquartered in Costa Mesa, CA, with operations in eight facilities across the US (www.leadingedgecorp.com) (www.associatedpaintersinc.com).

The formation of International Aerospace Coatings creates a global provider of aviation coating services, including exterior and interior aircraft painting, aircraft refurbishment and provision of aircraft graphics. The newly merged company employs approximately 800 people across Europe and North America. Leading Edge, Associated Painters and Eirtech will continue to operate under their respective brand names and existing management teams in their geographies and provide aviation services to aircraft original equipment manufacturers (OEMs), commercial airlines, private operators, aircraft leasing companies and military customers.

 “The aviation sector is not constrained by geographical boundaries and is a dynamic, global industry,” said Niall Cunningham, chief executive officer of Eirtech Aviation. “It therefore follows that aviation service providers will adopt similar global models. Merging a leading European and US provider was an obvious move. It positions the new entity as an industry leader by size and scale.”

Vance Street Capital makes control investments in companies with enterprise values up to $200 million. Sectors of interest include precision industrial manufacturing, aerospace & defense, and medical components & devices. The firm is based in Los Angeles (www.vancestreetcapital.com).

“We are excited to partner with Eirtech Aviation and bring it together with Leading Edge to create a unique and strategic global leader in exterior aviation coating services,” said Brian Martin, principal at Vance Street Capital. “We look forward to supporting the growth and further expansion plans of the combined entity.”

 “Our two companies share an unrelenting commitment to providing customers with the highest possible quality of service, while also meeting their needs for quick turnaround times and flexibility,” said Jude Dozor, chief executive officer of Leading Edge. “As a combined company, our customers will benefit greatly from our extended reach across the US and Europe, and our increased ability to cost effectively serve their needs at hangar locations around the world.”

2014 PEPD • Private Equity’s Leading News Magazine • 8-7-14

Dubin Clark Acquires Kellstrom Defense

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The Merex Group, a portfolio company of Dubin Clark & Company, has acquired Kellstrom Defense Aerospace, a provider of aerospace logistics.  This is the fourth add-on acquisition for The Merex Group since being acquired by Dubin Clark in October 2011.

Kellstrom Defense provides aftermarket logistics and inventory support for a variety of defense derivative aircrafts. The company is headquartered in Miramar, FL (www.kellstrom.com).

The Merex Group is a provider of support services for US manufactured legacy defense platforms including aircraft, helicopters and their respective engines.  Supporting more than 35 armed forces worldwide that operate legacy defense platforms, Merex provides spares & components, repair & overhaul management, and project management of systems upgrades. The company is headquartered in Camarillo, CA (www.merexinc.com).

“This transaction reaffirms the opportunity we see to drive consolidation and scale in the global defense aftermarket space. The opportunity to support a strong management team and well-positioned strategy continues to be embraced by our investor base,” said Michael Hompesch, a Partner at Dubin Clark.

GE Antares served as administrative agent on the senior secured credit facility used to support the acquisition of Kellstrom.  GE Capital Markets served as sole lead arranger and joint bookrunner on this facility.

“GE Antares is a valued business partner, bringing more than just capital,” said Mr. Hompesch.  “They also brought GE’s expertise in aerospace, helping us realize the opportunity we see to drive consolidation and scale in the global defense aftermarket space.”

Dubin Clark seeks to acquire manufacturing, value-added distribution, and service companies with $10 million to $100 million in revenues and at least $2 million of EBITDA. The firm was founded in 1984 and is based in Greenwich, CT (www.dubinclark.com). 

© 2014 PEPD • Private Equity’s Leading News Magazine • 5-15-14

Morgenthaler Exits Avtron Aerospace

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Morgenthaler Private Equity has sold Avtron Aerospace to private equity firm CapitalWorks.

Avtron Aerospace was one of three companies owned by Avtron Holdings which Morgenthaler acquired in November 2007. In March 2012, Avtron Loadbank was sold to Emerson and then in October 2012, Avtron Industrial Automation was sold to Nidec.

Avtron Aerospace is a designer and manufacturer of electrical, electronic, and hydraulic aircraft component test products used in the commercial and military aerospace markets. The company’s customers span the aerospace supply chain and include aircraft manufacturers, aircraft component OEMs, commercial airlines, independent MRO providers, and foreign and US military forces. Avtron Aerospace employs approximately 110 people. The company was founded in 1953 and is based in Independence, OH (www.avtron.com).

“We are proud of what we have accomplished over our six year investment in Avtron. Morgenthaler worked closely with management to build three market leading companies–Avtron Loadbank, Avtron Industrial Automation, and Avtron Aerospace–and then divested each one successfully in three separate transactions,” said Karen Tuleta, Partner at Morgenthaler. “On behalf of myself, Peter Taft, Matt Yohe, and Mark Wachtmeister of Morgenthaler, as well as Rich Garcia of Avtron Holdings, it has been a pleasure working with the very talented management teams at each of the three Avtron companies and we wish them all continued success.”

Morgenthaler Private Equity invests in companies in the lower middle market that have transaction values between $25 million and $150 million and EBITDAs in excess of $5 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).

“I personally want to thank Morgenthaler for its collaborative approach and strategic insights over the course of our partnership. After successfully implementing many growth and operational improvement initiatives, Avtron Aerospace is well-positioned for future growth, and the company is excited to begin a new partnership with CapitalWorks,” said John Pesec, President and CEO of Avtron Aerospace.

CapitalWorks acquires mid-west based middle market companies that have revenues from $15 million to $75 million and EBITDAs of $3 million to $9 million. Sectors of interest include manufacturing, value-added distribution, business services, and financial services. The firm was founded in 1999 and is headquartered in Cleveland, OH (www.capitalworks.net).

Stifel, Nicolaus & Company served as financial advisor to Morgenthaler Private Equity.

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-11-13

Palm Beach Capital Acquires CTS Engines

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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

Resilience Acquires Avionics International Supply

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Aerospace Products International, a portfolio company of Resilience Capital Partners, has acquired the assets of Avionics International Supply. Resilience Capital Partners acquired Aerospace Products International in March 2013.

“Adding AIS’s product offerings is another step toward our goal of creating the leading independently-owned parts distributor in the aerospace industry,” said Steven Rosen, Co-CEO of Resilience.

Avionics International Supply is a wholesale distribution and repair services company. The company’s main focus is the procurement and sale of new and used parts and supplies, tooling and test equipment and other supplementary services and programs that are all designed to support aircraft repair facilities. The company was founded in 1984 and is based near Dallas in Denton, TX (www.avionicsinternational.com).

Aerospace Products International (API) distributes aircraft parts and accessories to manufacturers, maintenance providers and operators of widely used military, commercial, corporate and general aviation aircraft. The company also provides supply chain management services to the aviation industry. API is based in Memphis (www.apiworldwide.com).

Resilience Capital Partners specializes in investing in middle market companies with $25 million to $250 million in revenues across a range of industries. The firm’s investment strategy is to acquire companies in a variety of special situations including underperformers, corporate divestitures, turnarounds, and orphan public companies. Since its inception in 2001, Resilience has acquired 32 companies under 20 platforms with over $2 billion in revenues. The firm is based in Cleveland (www.resiliencecapital.com).

The acquisition of Avionics International Supply is part of the sixth platform investment in The Resilience Fund III, LP which was raised in 2012 with $222 million of committed capital.

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-23-13

Carlyle Group Acquires Eight Manufacturing Facilities from Unison Engine Components

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The Carlyle Group announced that its portfolio company Dynamic Precision Group has signed an agreement to acquire eight aerospace component fabrication and machining facilities located on three sites in the US, Canada and the UK, which design, manufacture and integrate components and systems for aircraft engines and airframes from Unison Engine Components, a subsidiary of GE Aviation. The transaction is expected to close by year end.

The acquired facilities provide precision manufacturing capabilities for commercial, military and gas turbine engine components to a blue-chip customer base worldwide. The sites, which employ 825 people, are located in Manchester, CT; Burnley, Lancashire, UK; and Orillia, Ontario, Canada.

Dynamic Precision Group is a manufacturer of complex components, specializing in the combustion, or “hot section,” of turbine engines used in commercial and military aviation as well as industrial gas turbine applications.  DPG’s core capabilities include laser services, air flow measurement, thermal coatings, electrical discharge machining, precision machining and TCT Blast™. The company is based in Stuart, FL (www.gotodpg.com).

“We are impressed with the diverse capabilities and product portfolio these businesses will add to Dynamic Precision Group. This transaction will substantially contribute to our goal of building a well-capitalized, highly capable supplier to the aero engine market,” said Adam Palmer, Managing Director and Head of Carlyle’s Global Aerospace, Defense and Government Services team.

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. The Carlyle Group employs 1,400 people in 34 offices across six continents and is based in Washington, DC (www.carlyle.com).

Acquisition financing was led by RBC Capital Markets and Deutsche Bank. Dynamic Precision Group and Carlyle were advised by Latham & Watkins and PricewaterhouseCoopers.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-5-13

Arlington Capital Acquires Delta Industries

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MB Aerospace, a provider of aerospace components and a portfolio company of Arlington Capital Partners, has acquired Delta Industries, a manufacturer of aero-engine components. Arlington Capital acquired MB Aerospace in March 2013.

Delta Industries specializes in the fabrication and machining of complex aero-engine components. The company had annual revenues of approximately $60 million in 2012. Delta Industries is based in Hartford, CT (www.delta-industries-ct.com).

“The Delta acquisition is part of a progressive widening of MB Aerospace’s capability footprint to address the critical service needs of our aero-engine customers. Historically, a typical aero-engine would have more than 400 unique suppliers; on the next generation of aero-engines this will be reduced to around 100 with tier one suppliers required to operate across a range of capabilities to serve their customers,” said MB Aerospace CEO Craig Gallagher. “The acquisition of Delta adds significant technical capabilities to the group, especially in relation to large-diameter fabrications and robotic welding of complex high-value aero engines components. In addition to its high levels of capability, Delta has an industry-leading reputation for its ability to manufacture challenging system-critical components.”

MB Aerospace is a provider of highly engineered components for the commercial and military aero-engine and industrial gas turbine markets. The company manufactures complex rings, casings and other engine components used in aero engine and industrial gas turbine platforms. Customers include Pratt & Whitney, Rolls-Royce, General Electric, Boeing, United Technologies, GKN, Mitsubishi Heavy Industries and Volvo Aerospace. The acquisition of Delta will expand the MB Aerospace business to projected revenues of more than $160 million and to 550 employees (up from 370) for the 2013 financial year. MB Aerospace is headquartered in Motherwell, UK (www.mbaerospace.com).

“We see exciting opportunities in the years ahead, as the global airline sector is expected to grow significantly over the next two decades, doubling from its current 20,000 aircraft by the early 2030s. This growth is being fuelled by the rising demand for travel in Asia coupled with the need of European and American airlines to replace ageing aircraft, dramatically increasing the demand for the wide range of world-class manufacturing and aftermarket services we already provide to some of the world’s biggest aviation players,” said Mr. Gallagher. “The global installed base of gas turbine aero-engine derivatives is nearly 225,000 units across various aerospace, defense and industrial applications and the majority of this fleet is expected to be growing and in service for several decades to come.”

Arlington Capital Partners has $1.5 billion of committed capital and focuses on buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include aerospace & defense, government services and software, healthcare services, business services, education and training. The firm is based in Washington, DC (www.arlingtoncap.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-2-13

Prospect Buys Velocity Aerospace, Forms New Platform

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Prospect Partners has invested in Velocity Aerospace Group, a provider of aviation aftermarket services. The is the fifth portfolio company for Prospect Partners’ $200 million third fund. Velocity Aerospace Group seeks to acquire other providers of aviation aftermarket services.

Velocity Aerospace Group provides aviation maintenance, repair, and overhaul services to a global customer base of commercial air transports, corporate business aircraft, regional airlines, and helicopters. The company operates FAA-certified repair stations in California and Florida and is headquartered in Burbank, CA (no website found).

“Velocity Aerospace Group is a niche market leader with exceptional potential for continued growth,” said Maneesh Chawla, a Principal at Prospect Partners. “We look forward to supporting management in building a larger aviation MRO services company that leverages Velocity Aerospace’s unique capabilities in avionics and in electronic instrumentation.”

Serving on the board of Velocity Aerospace Holding Group, from Prospect Partners, are Mr. Chawla, as Chairman, and Prospect Partners’ Vice President Brad O’Dell, as a Director.

Prospect Partners focuses exclusively on management-led leveraged recapitalizations and acquisitions of niche market leaders with revenues between $10 million and $75 million. Since 1998, Prospect Partners has invested nationwide in more than 100 companies in a range of niche manufacturing, distribution, and specialty service markets. The firm has $470 million of capital under management and is based in Chicago (www.prospect-partners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-16-13

MidOcean Acquires Noranco

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MidOcean Partners has acquired, along with co-investors, a significant equity position in Noranco, a supplier of machined and sheet metal components for the commercial and military aerospace markets.

Noranco is a supplier of complex machined and sheet metal components, assemblies, and kits for OEMs and Tier I suppliers in the landing gear, aero-structures, and aero engines markets. The company focuses solely on the aerospace industry, covering commercial/regional jet, business jet and military/rotorcraft markets. Key customers include Honeywell, United Technologies, Bombardier, Messier-Dowty and Spirit AeroSystems. Noranco is headquartered in Toronto (www.noranco.com).

“Noranco is a company with tremendous technical expertise in producing advanced precision-machined components for the aerospace industry. It serves a broad customer base and a broad base of aerospace platforms, including OEM platforms produced by Boeing, Bombardier, and Airbus,” said Frank Nash, a MidOcean Managing Director. “We anticipate leveraging its impressive capabilities and management team by providing the capital to allow Noranco to continue to support the growth of its customers and to add new capabilities, customers and supported platforms to those Noranco already has.”

With the acquisition of Noranco, Michael Baughan, a MidOcean Executive Board member and former President and COO of B/E Aerospace, will become Chairman of Noranco.

“Noranco is extremely pleased to have completed this transaction with MidOcean Partners. Our position as a leader within this segment of aerospace has been formulated upon great people, precision products, integrated operational excellence, and a world class customer portfolio,” said Noranco CEO David Camilleri. “With the strategic and financial support of MidOcean and its investor group, alongside a very positive market outlook for aerospace, Noranco can now rapidly move forward with the execution of its robust growth strategy.”

MidOcean Partners is a private equity firm focused on the middle market. Industries of interest include consumer, business and media services, and industrial services. The firm has offices in New York and London (www.midoceanpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-3-13

Overall Capital Partners Acquires Honeycomb

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Overall Capital Partners has acquired Honeycomb Company of America, a manufacturer of military aircraft parts.

Honeycomb Company of America is a manufacturer of complex, flight critical, bonded, composite assemblies for U.S. military aircraft platforms. The company provides design, engineering, fabrication, and quality assurance services for multiple aircraft platforms. Honeycomb was founded in 1948 and is based in a Sarasota, FL (no website found).

Overall Capital Partners invests in businesses with annual sales ranging between $5 and $50 million. The firm is based in Boston (www.overallcapital.com).

BB&T Capital Markets | Windsor Group (BBTW) served as the exclusive financial advisor to Honeycomb. BBTW serves middle-market clients in the defense and government services industry, providing merger and acquisition advisory support, corporate finance and valuation services. Click HERE to visit BBTW’s website.

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-28-13

 

Resilience Capital Partners Acquires Aerospace Products International

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First Aviation Services has entered into an agreement to sell the majority of its interest in Aerospace Products International to Resilience Capital Partners. This acquisition is the sixth platform investment for Resilience Fund III, L.P. which closed in 2012 with $222.5 million of committed capital.

“Aerospace Products International is well-positioned to take advantage of the industry’s trend toward the outsourcing of after-market product distribution and other critical functions. We will make a significant investment of capital to execute on our strategy of enhancing the company’s capabilities and competitiveness and build it into a truly great international company,” said Steven Rosen, Co-CEO of Resilience.

Aerospace Products International (API) distributes aircraft parts and accessories to manufacturers, maintenance providers and operators of widely used military, commercial, corporate and general aviation aircraft. The company also provides supply chain management services to the aviation industry. API is based in Memphis (www.apiworldwide.com).

Resilience Capital Partners specializes in investing in lower middle market companies across a range of industries. Resilience’s investment strategy is to acquire companies in a variety of special situations including underperformers, corporate divestitures, turnarounds, and orphan public companies. Since its inception in 2001, Resilience has acquired 28 companies under 20 platforms with over $2 billion in revenues. The firm is based in Cleveland (www.resiliencecapital.com).

Kenneth Ricci and Ulf Buergel, both operating partners with Resilience, will oversee the investment on behalf of Resilience. API’s President and Chief Executive Officer, Andrew Trosper, will continue in his role after the transaction is complete.

“Aviation services is a complex and capital-intensive industry, but it is one that we know well from our other investments,” said Mr. Buergel. “We have the experience, management expertise and capital resources to help Aerospace Products International build upon its strong foundation and benefit from the growing aviation market.”

The seller, First Aviation Services, is a provider of repair and overhaul, retables management and related engineering services to the aviation industry. The company’s principal operating subsidiaries are Aerospace Turbine Rotables (Wichita, KS) and Piedmont Propulsion Systems (Winston-Salem, NC). First Aviation Services is based in Westport, CT (www.firstaviation.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-21-13