AEI buys Kellstrom Materials

AE Industrial Partners LLC has acquired Kellstrom Commercial Aerospace Inc, a provider of aftermarket parts, repairs, logistics and supply chain management solutions for the commercial aerospace sector. The seller was Inverness Management LLC. No financial terms were disclosed. Moelis & Company was financial advisor to Kellstrom Materials on the transaction.

PRESS RELEASE

Boca Raton, FL – April 13, 2015 – AE Industrial Partners, LLC (“AEI”), a private equity investor in aerospace, power generation and specialty industrial companies, announced today that it has acquired Kellstrom Commercial Aerospace, Inc. (“Kellstrom Materials”), a leading global brand in the commercial aerospace aftermarket sector, from Inverness Management, LLC. Terms of the transaction – which closed today – were not disclosed.

Kellstrom Materials is a recognized industry‐leading provider of aftermarket parts, repairs, logistics, and supply chain management solutions, serving approximately 1,000 customers – commercial airlines, air cargo operators, and MROs (maintenance, repair and overhaul) – in more than 85 countries.

“Kellstrom’s diverse, blue‐chip customer base currently uses the company as a first ‘portal’ for their aftermarket parts needs,” said David H. Rowe, managing partner of AEI. “We believe we can leverage Kellstrom’s reputation and existing reach and expand its capabilities to encompass the manufacturing and MRO phases of the aftermarket supply chain as well as to grow Kellstrom’s already strong parts distribution business. We have committed significant capital and resources to assist Kellstrom in meeting all of its customers aftermarket parts needs.”

“Both the aerospace aftermarket and the MRO segment are expected to have strong demand for the foreseeable future, driven by increased consumption of aftermarket parts and the growing installed base of aircraft,” said Oscar E. Torres, chief operating officer of Kellstrom. “AEI’s acquisition of Kellstrom is particularly timely, given the immediate opportunities we see and the need for financial and management resources to capitalize on them. In addition, AEI’s extensive industry contacts will assist in identifying and pursuing additional short- and long-term growth initiatives.”

Kirkland & Ellis LLP served as legal advisor and Moelis & Company served as financial advisor to Kellstrom Materials.

About AE Industrial Partners, LLC
AE Industrial Partners, LLC invests in the aerospace, power generation and specialty industrial sectors, focusing on companies involved in highly technical manufacturing, distribution, MRO (maintenance, repair and overhaul) and industrial service-based businesses. AE Industrial’s team includes investment and operating partners with C-suite operating and investment experience in organizations such as GE, Gulfstream Aerospace, Power Systems Manufacturing, Hawker Beechcraft, Landmark Aviation, Bombardier, IDEX, Aviall, B/E Aerospace, NetJets, Grand Prairie, and Sequa. For more information, please visit www.aeroequity.com

About Kellstrom Materials
Kellstrom Materials supports leading airlines and air transport operators worldwide with cost-effective, comprehensive spare parts provisioning and supply chain management support. Kellstrom Materials’ wide range of services include new OEM parts distribution, AOG and JIT support, consignment management, pre-owned parts distribution, repair management, overhauled rotable components, whole engine assets, and fleet provisioning programs based on real world experience. For more information, please visit www.kellstrommaterials.com