O2 Investment Partners has acquired sister-companies First Class Air Support and Cargo Repair LLC, the first platform investment for the firm’s third fund.
First Class Air Support is a worldwide distributor of more than 100,000 SKUs of new and overhauled aftermarket aircraft components. The company was founded in 2001 by CEO Isac Roths. In 2012, Mr. Roths founded Cargo Repair, a Federal Aviation Administration (FAA) and European Union Aviation Safety Agency (EASA) certified repair station specializing in the maintenance, repair, and overhaul (MRO) of cargo loading system components installed in Boeing, Douglas and Airbus aircraft.
Customers of both First Class Air Support and Cargo Repair are primarily airlines, ranging from large domestic and global carriers to smaller regional airlines, with a niche focus on the freighter market. The businesses are headquartered in Louisville, Kentucky with additional support facilities in Miami and Pensacola, Florida; Victorville, California; Istanbul, Turkey; and the United Kingdom.
“We are very excited to partner with O2 to help us facilitate our next stage of growth,” said Mr. Roths. “We have built strong and lasting customer relationships and would like to enhance our level of service through strategic inventory purchases and acquisitions of other aviation-related companies to broaden our offerings. We also have an aggressive plan to expand our MRO capabilities, through our newly formed entity First Class MRO, supply partnerships, and end-market presence. Our company and platform are poised to scale and we believe O2 is the perfect partner to help us achieve our goals.”
“First Class Air Support and Cargo Repair have established a strong market position in the highly fragmented aviation aftermarket, and we believe there is a tremendous opportunity for growth in the market over the next decade,” said Jay Hansen, a managing partner at O2.
O2 Investment Partners makes control investments of $5 million to $75 million in companies with EBITDAs from $2 million to $10 million located anywhere in the US and Canada but prefers the Midwest and the Great Lakes regions. Sectors of interest include niche manufacturing, niche distribution, select service businesses, and certain technology businesses. O2, based in the Detroit suburb of Bloomfield Hills, is backed by the Orley family which has been investing in operating businesses and real estate since 1950.
Financing for this transaction was provided by New York-based Graycliff Partners and Cincinnati-based First Financial Bank.
© 2020 Private Equity Professional | February 28, 2020
