Weinberg Capital-backed Aero 3 buys Avianor’s wheel and brake unit

Aero 3 Inc, a portfolio company of U.S. private equity firm Weinberg Capital Group, has bought the Wheel & Brake Division (W&B) of Avianor Inc, an aerospace and rail equipment specialist based in Montréal. No financial terms were released. Avianor W&B is a wheel and brake maintenance facility with capacity to overhaul over 10,000 units per year. Aero 3, a U.S.-based holding company formed in 2012 to acquire AeroRepair Corp and Hemico Inc, will rename the acquired business AeroRepair Canada. Weinberg said the deal will enhance Aero 3’s capabilities and geographic reach.

PRESS RELEASE

Weinberg Capital Group Announces Acquisition Of The Wheel & Brake Division Of Avianor

ACQUISITION ENHANCES CAPABILITIES AND GEOGRAPHIC REACH OF PLATFORM COMPANY AERO 3

CLEVELAND, Oct. 9, 2015 /PRNewswire/ — Weinberg Capital Group (“WCG”) and its portfolio Company, Aero 3, Inc. (“Aero 3” or the “Company”), announced today the acquisition of the Wheel & Brake Division of Avianor (“Avianor W&B”). The transaction marks the second add-on acquisition for Aero 3 in 2015. In August, the Company announced the acquisition of Griffin, Georgia based Accessory Overhaul Group (“AOG”).

Aero 3 is a holding company formed in 2012 to acquire AeroRepair Corp. (“AeroRepair”) and Hemico, Inc. (“Hemico”), sister companies headquartered in Londonderry, New Hampshire with a second facility in Indianapolis, Indiana. AeroRepair is a Federal Aviation Administration (“FAA”) and European Aviation Safety Agency (“EASA”) certified 145 repair station and machine shop that specializes in the repair and overhaul of aircraft brakes, wheel assemblies and landing gear. The operations of the recently acquired AOG have been integrated into Aero 3 and the business has been rebranded as AeroRepair. Hemico manufactures replacement or modified aircraft parts under an FAA Parts Manufacturer Approval (“PMA”) certification.

Based in Montreal, Canada with an additional facility in Calgary, Avianor W&B is the second largest independent wheel and brake maintenance facility in Canada, with capacity to overhaul over 10,000 units per year. Avianor W&B is an FAA and EASA certified 145 repair station that specializes in the repair and overhaul of aircraft brakes and wheel assemblies. Avianor W&B serves similar markets as AeroRepair but also performs repair and overhaul services for Boeing and Airbus aircraft. This will provide Aero 3 access to the growing market for narrow and wide body aircraft. Over the next several months, Avianor W&B will be integrated into Aero 3 and rebranded AeroRepair Canada.

Commenting on the acquisition, Daniel M. Bell, CEO of Aero 3, stated, “Through this acquisition, Aero 3 will grow from four to six strategically located facilities and will expand its aircraft and accessory repair and overhaul capabilities. Importantly, by adding facilities in Montreal and Calgary we will truly be a “one-stop shop” for customers throughout the United States and Canada.”

Ronald E. (Chip) Weinberg, Jr., Managing Director & Principal at Weinberg Capital Group added, “The acquisition announced today represents a further extension of the maintenance capabilities of Aero 3. It will provide a host of new customers, increased services and aircraft models. That being said, the most attractive aspect of this transaction is our expanded geographic presence as we gain a stronger foothold into the Canadian aviation market. We look forward to integrating the businesses as we continue to build Aero 3 into a globally-recognized leader in aircraft maintenance.”

WCG is actively seeking additional add-on opportunities for Aero 3. Opportunities of interest include businesses involved in the repair and overhaul of aircraft brakes, wheel assemblies, landing gear and other mechanical and hydraulic components. Businesses involved in the manufacture and distribution of PMA parts are also of interest.

Weinberg Capital Group

WCG is a Cleveland, Ohio based private equity group whose principals consist of Ronald E. Weinberg, Ronald E. (Chip) Weinberg, Jr., John E. Herman and Cameron S. Miele. WCG invests in well-positioned middle market companies. WCG focuses on firms where the current ownership and management reinvest in the transaction, and management remains in place, affording current shareholders and management an opportunity to achieve liquidity coupled with ownership continuity. WCG invests in companies throughout North America with annual revenue from $15 to $100 million and EBITDA ranging from $2 to $10 million. The firm’s current portfolio covers a broad range of industries including manufacturing, business services, aviation services, financial services, consumer products, retail and value added distribution. Additional information on WCG can be found at www.weinbergcap.com.

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