KippsDeSanto & Co. Advises GenNx360 Capital Partners on its acquisition of Precision Aviation Group, Inc.
KippsDeSanto & Co. is pleased to announce the acquisition by its client, GenNx360 Capital Partners (“GenNx360” or the “Company”) of Precision Aviation Group, Inc. (“PAG”), a portfolio company of PNC Riverarch Capital. GenNx360 is a New York City-based private equity firm established in 2006 focused on acquiring middle market business services and industrial companies with proven and sustainable business models.
Headquartered in Atlanta, GA, with nine additional locations across the globe, PAG is a leading provider of maintenance, repair, and overhaul (“MRO”) and global supply chain network solutions for fixed and rotary-wing operations across a range of diverse end markets. As the exclusive provider of its trademarked Inventory Supported Maintenance, Repair, and Overhaul (“ISMRO®”) capability focused on multi-site logistics and full lifecycle support, PAG delivers comprehensive support to varied general aviation, commercial, and military platforms. In addition, the Company maintains its status as one of only a few companies, outside of Original Equipment Manufacturers (“OEM”), to collectively hold unlimited ratings granted by the Federal Aviation Administration (“FAA”).
The acquisition is expected to integrate GenNx360’s industry experience, OEM relationships, and operational expertise alongside PAG’s technical proficiency and talented management team to create new growth opportunities. The partnership allows PAG to leverage GenNx360’s resources to enhance its current suite of products and services, providing PAG with multiple avenues to pursue growth within the aviation MRO services market. Financial terms of the transaction were not disclosed.
We believe this transaction demonstrates several key trends in the aerospace and defense M&A environment:
- Highly-fragmented aviation aftermarket, including distribution of parts and MRO services, provides opportunistic buyers diverse and numerous opportunities to consolidate the industry through tuck-in acquisitions
- Significant value can be unlocked from acquisition targets with proprietary / differentiated technologies, such as Parts Manufacturer Approval (“PMA”) components and Designated Engineering Representative (“DER”) repairs
- Attractive aviation market fundamentals, driven in part by increasing traffic demand, utilization, and commercial fleet size, are expected to continue into the foreseeable future
- Sophisticated private equity buyers with intimate knowledge of target industries and explicit growth strategies can successfully compete against strategic buyers for coveted assets
GenNx360 Capital Partners (“GenNx360”), a New York-based private equity firm which invests in middle market business services and industrial companies is pleased to announce its acquisition of Precision Aviation Group, Inc. (“PAG” or the “Company”), effective July 26, 2018. PAG, established in 1993, is a leading provider of maintenance, repair and overhaul (MRO) and supply chain solutions for fixed and rotary-wing aircrafts serving diverse end markets. Headquartered in Atlanta, Georgia, the Company operates out of nine locations in the United States, Canada, Australia, Brazil and Singapore.
“PAG is a leading provider of MRO services with a talented management team and a lot of growth potential.” said Daphne Dufresne, the GenNx360 Managing Partner who led the transaction. “PAG operates in a space that we know well and can add value through our industry relationships and operating initiatives. We look forward to working alongside management to capitalize on future growth opportunities.”
David Mast, President & CEO of PAG, commented, “We are excited about partnering with GenNx360. Their industry experience, OEM relationships, and operational expertise will allow us to quickly enhance our current suite of products and services. Additionally, we are now poised to pursue the multiple avenues of growth available to us and expand on our mission of providing industry leading Aviation MRO services.”
Financial terms of the transaction were not disclosed.
About GenNx360 Capital Partners
GenNx360 Capital Partners is a private equity firm focused on acquiring middle market business services and industrial companies. We invest in companies with proven and sustainable business models in expanding industries with the objective of implementing the required operating changes to deliver cost efficiencies, accelerate growth, and generate strong financial returns. Target industries include industrial and environmental services, packaging, food and agricultural products and services, logistics and supply chain solutions, industrial machinery and components, infrastructure equipment and services, specialty chemicals, and aerospace and defense. GenNx360 was founded in 2006 and is headquartered in New York City. For more information on GenNx360 Capital Partners, please visit www.gennx360.com.
About Precision Aviation Group, Inc.
Precision Aviation Group (PAG) is a leading provider of products and value-added services to the worldwide aerospace and defense industry. With nine locations and more than 260,000-square-feet of sales and service facilities in the United States, Canada, Australia, Brazil, and Singapore, PAG uses its distinct business units and customer-focused business model to serve aviation customers through two business functions – Aviation Supply Chain, and its trademarked Inventory Supported Maintenance, Repair and Overhaul (ISMRO®) services. For more information on Precision Aviation Group, please visit www.precisionaviationgroup.com
For media inquiries about this press release, please contact:
GenNx360 Capital Partners
Carmen Rojas, Investor Relations Manager