Vance Street Capital, the Los Angeles-based LBO shop, completed its exit of Klune Industries, a manufacturer of aerostructures, to NYSE-listed Precision Castparts Corp. The exit, coming off an acquisition the PE firm made in 2010, is the first from its current fund. Specifics on the deal were not publicized.
LOS ANGELES – Aug. 7, 2012 – Vance Street Capital, LLC, a Los Angeles-based private equity firm, today announced that it has completed the sale of Klune Industries, a manufacturer of complex aluminum, nickel, titanium and steel aerostructures, to Precision Castparts Corp. (NYSE: PCP), a worldwide, diversified manufacturer of complex metal components and products. Terms of the transaction were not disclosed.
Vance Street acquired a majority interest in Klune Industries in early 2010 and undertook a number of initiatives to improve operations. This included bolstering the management team, integrating a strategic acquisition which significantly increased content on key commercial aerospace platforms such as Boeing 787, 737 and 777, streamlining manufacturing processes through the implementation of Six Sigma protocols, and paying down the company’s debt burden. These activities served to nearly double revenue and significantly increase profitability, ultimately making the company an attractive acquisition for Precision Castparts. The sale of Klune to Precision Castparts is the first from Vance Street’s current fund.
“In all of our investments, we seek to provide the resources and operational expertise that will enable our portfolio companies to reach their full potential and attain the highest level of operating performance,” stated Richard R. Crowell, partner at Vance Street. “Our partnership with Klune is a clear demonstration of the successful execution of this strategy.”
Crowell added, “I want to thank the entire Klune management team for their hard work and the significant role they played in transforming the company into the industry leader it is today.”
About Klune Industries, Inc.
Headquartered in Los Angeles, California, Klune Industries is a leading aerospace contractor, manufacturing complex parts, assemblies and components for commercial aircraft, military aircraft and missile systems. The company specializes in manufacturing doors, nacelles, wings and other aerostructures for the commercial market, and missile systems components, fuel tanks, bomb racks, rotors, ground support and airframes for the military market. The company’s products can be found on the world’s leading platforms such as Boeing’s 737, 747, 777, 787, Airbus’s A-320, A-350, A-380, and Gulfstream’s G650. Klune operates facilities in North Hollywood, California, Spanish Fork, Utah, and Kent, Washington, and employs approximately 740 employees. For more information visit: www.klune.com
About Precision Castparts Corp.
Precision Castparts Corp. is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power, and general industrial markets. Precision Castparts Corp. is the market leader in manufacturing large, complex structural investment castings, airfoil castings, forged components, and highly engineered, critical fasteners for aerospace applications. In addition, the Company is the leading producer of airfoil castings for the industrial gas turbine market. Precision Castparts Corp. manufactures extruded seamless pipe, fittings, forgings, and clad products for power generation and oil & gas applications; commercial and military airframe aerostructures; and metal alloys and other materials to the casting and forging industries. For more information visit: www.precast.com
About Vance Street Capital
Vance Street Capital is a Los Angeles-based private equity firm that makes control investments in companies with enterprise values up to $200 million. Preferred industries include aerospace and defense, medical components and devices, precision industrial manufacturing and business services. For over two decades, Vance Street’s partners have worked with management, family owners and other co-investors to accelerate revenue growth, improve operations and acquire strategic assets for the companies in their investment portfolio. For more information please visit: www.vancestreetcapital.com