Acorn Growth Companies, AE Industrial Partners, Arlington Capital, and Liberty Hall Partners are some examples of US and Canadian companies that would be interested in buying a small-to-midsize aircraft supply company.
ACORN GROWTH COMPANIES
AE INDUSTRIAL PARTNERS
ARLINGTON CAPITAL
LIBERTY HALL PARTNERS
To determine the US or Canadian companies that would be interested in buying a small-to-midsize aircraft supply company, we began by looking for merger and acquisition (M&A) reports of small-to-medium scale aircraft supply companies. A report published in October 2018 by Aerospace Manufacturing & Design addresses the mergers and acquisitions in the aerospace industry based on the scale of the acquired companies, top acquiring companies, market size, forecast, etc. According to this report, 95% of the deals in the aerospace and defense sector were for less than $500 million, which is considered a middle market.
This report also suggests that the big players of the segment are trying to consolidate the middle market by acquiring and uniting small companies under bigger parent companies. An analysis of the ten deals made in the past months, shows companies deploying a buy-and-build strategy. Also, eight of these deals were financed by private equity groups and focused on metal processing and precision machine manufacturers, maintenance, repair, overhaul (MRO) providers, and manufacturers of aircraft interiors. No matter the sub-sector, there is a group of acquirers aiming to consolidate the market. We also found that private equity (PE) groups and their portfolio companies are actively acquiring aerospace and defense (A&D) businesses. PE involvement represents almost 40% of A&D deal activity. Many groups are serial acquirers with multiple interests. The most active PE firms in the sector include Acorn Growth Companies, AE Industrial Partners, Arlington Capital, and Liberty Hall Partners.
We analyzed the four major acquirers by reviewing databases such as Hoovers, Crunchbase, and Zoominfo. We found that these companies have acquired multiple aerospace companies of different scales and sectors. After analyzing the previous acquisitions of these, we found that many of these acquired aerospace companies were part of the small-to-midsize aircraft supply industry. Hence, these companies qualify as some examples of US or Canadian companies that would be interested in buying a small-to-midsize aircraft supply company.
We consider these companies might be interested in acquiring because they are the most active acquirers with a special interest in the aerospace and defense industry, they are also trying to consolidate the scattered middle market of the aerospace supply industry, and have acquired multiple companies of the same industry in the past; which makes them potential buyers.
ACORN GROWTH COMPANIES
- Acorn Growth Companies is a private equity firm from Oklahoma whose focus
are defense and aerospace opportunities. - The company has acquired seven organizations, being the most recent one Robbins-Gioia.
- In May 14th, 2019, Acorn Growth Companies also acquired DIMO Corp.
- Since 1994, DIMO Corp.
produces and markets spares, parts, and components for aircraft like all the Airbus models and the Boeing models B-737, B-747, B-757, B-767, B-777, and B-787. - DIMO Corp.
sales military aircraft spares, parts, surplus, and components to the Navies, Air Forces, and Armed Forces of the US, Canada, Australia, and different countries from Asia, South America, Europe, and the Middle East. - DIMO Corp.
has an annual sales revenue of $25million which classifies it as a small-to-mid sized aircraft supply company. - Since Acorn Growth Companies' focus
are defense, aerospace, and intelligence, it invests in companies who work with global mobility and national protection. Its ultimate goal is to build a portfolio of companies that can become market leaders.
AE INDUSTRIAL PARTNERS
AE Industrial Partners is a firm located in Florida who provides strategic direction, financial resources, and management expertise to organizations dedicated to technical manufacturing, MRO (maintenance, repair, and overhaul), distribution, and data services/logistics.- The company has acquired 13 organizations, the most recent one was
Triman Industries on September 3rd, 2019. -
Triman Industries is a distributor of service and value and a global provider of components for the defense, military, and aerospace industries. - Additionally, Triman Industries has an annual revenue of $10 million and between 11 and 50 employees, making it a small-to-mid sized aircraft supply company.
- To explain the reason why they acquired
Triman , Jon Nemo, partner at AEI, said that "Triman is strategically important in the markets it serves and is a critical link between OEMs and the end users of parts in the supply chain, The Triman team has built a great platform in target markets and they look forward to build its brand and strengthen its already leading market position."
ARLINGTON CAPITAL
- Arlington Capital Partners
is private equity firm located in Washington, D.C.who focuses on investment opportunities for companies of the middle market like healthcare services, government services, outsourced business services, software, and aerospace/defense. - The company has acquired 19 organizations, the most recent one being Riverpoint Medical.
- In April 2019, Arlington Capital Partners also acquired Radius Aerospace.
- Radius Aerospace works with first level aerospace and defense clients and OEMs, providing fabrications, vertically integrated products, forming, and solutions.
- Radius Aerospace's annual revenue is $11.4 million. The company also has 57
employees which makes it a small-to-mid-sized aircraft supply company. - The reason why ACP acquired Radius Aerospace was explained by Bilal Noor, VP at Arlington Capital, saying that "Radius represents was attractive opportunity for Arlington Capital to continue its history of partnering with differentiated suppliers in critical positions within the aerospace and defense value chain. The Company’s forming and processing abilities fulfill a necessary and niche need within the industry."
LIBERTY HALL PARTNERS
- Liberty Hall Capital Partners is a New York-based private equity firm who focuses on investments in companies that serve the defense and aerospace industries around the world.
- The company has acquired ten organizations. The last one was Onboard Systems International.
-
In April 2018, Liberty Hall Partners acquired AeroCision, a worldwide supplier of assemblies and advanced engine components for the aerospace industry like seal assemblies, rings, multi-level assemblies, castings, and machined turbine engine parts. AeroCision has an annual revenue of $8.2 million and 41 employees, which makes it a small-to-mid-sized aircraft supply company.- LHCP's goal behind the acquisition of AeroCision, was to integrate it with another acquired company, Bromford Industries, a global supply leader of advanced engine components, assemblies, and fabrications for the power generation and aerospace industries.
- According to Rowan Taylor, Liberty Hall's founding partner, "the acquisition of AeroCision is highly strategic to Bromford and fully supports their vision of building a fully-integrated, diversified engine component supplier."
To determine the US or Canadian companies that would be interested in buying a small-to-midsize aircraft supply company, we began by looking for merger and acquisition (M&A) reports of small-to-medium scale aircraft supply companies. A report published in October 2018 by Aerospace Manufacturing & Design addresses the mergers and acquisitions in the aerospace industry based on the scale of the acquired companies, top acquiring companies, market size, forecast, etc. According to this report, 95% of the deals in the aerospace and defense sector were for less than $500 million, which is considered a middle market.
This report also suggests that the big players of the segment are trying to consolidate the middle market by acquiring and uniting small companies under bigger parent companies. An analysis of the ten deals made in the past months, shows companies deploying a buy-and-build strategy. Also, eight of these deals were financed by private equity groups and focused on metal processing and precision machine manufacturers, maintenance, repair, overhaul (MRO) providers, and manufacturers of aircraft interiors. No matter the sub-sector, there is a group of acquirers aiming to consolidate the market. We also found that private equity (PE) groups and their portfolio companies are actively acquiring aerospace and defense (A&D) businesses. PE involvement represents almost 40% of A&D deal activity. Many groups are serial acquirers with multiple interests. The most active PE firms in the sector include Acorn Growth Companies, AE Industrial Partners, Arlington Capital, and Liberty Hall Partners.
We analyzed the four major acquirers by reviewing databases such as Hoovers, Crunchbase, and Zoominfo. We found that these companies have acquired multiple aerospace companies of different scales and sectors. After analyzing the previous acquisitions of these, we found that many of these acquired aerospace companies were part of the small-to-midsize aircraft supply industry. Hence, these companies qualify as some examples of US or Canadian companies that would be interested in buying a small-to-midsize aircraft supply company.
We consider these companies might be interested in acquiring because they are the most active acquirers with a special interest in the aerospace and defense industry, they are also trying to consolidate the scattered middle market of the aerospace supply industry, and have acquired multiple companies of the same industry in the past; which makes them potential buyers.