Blackstone (NYSE:BX) and MB Aerospace (“MBAe”) announced today that
private equity funds managed by Blackstone have agreed to acquire MBAe,
a leading Tier I engine component manufacturer and repair business, from
Arlington Capital Partners.
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MBAe has facilities across the U.S., U.K., and Poland. The company has a
well-balanced manufacturing model providing complex machined and
fabricated assemblies into production and aftermarket applications
across an installed base of 65 engine platforms. MBAe has secured strong
positions on next generation engines that will soon come into
production. The Company also operates a repair business to help reduce
inventories for its customers as their focus increases on the full life
cycle management of aero-engine assets.
MBAe’s key customers include Pratt & Whitney, Rolls-Royce, General
Electric, Boeing, United Technologies Aerospace Systems, Pratt & Whitney
AeroPower, GKN, Mitsubishi Heavy Industries, and the US Department of
Defense. The company’s experienced management team will remain in place
and will continue to be led by Craig Gallagher, Chief Executive since
2003.
The transaction is expected to close later this year and is subject to
customary regulatory approvals.
Bruce McEvoy, Managing Director at Blackstone, commented, “We are
thrilled to have the opportunity to partner with such a high quality
management team. MBAe is a best-in-class engine component manufacturing
and repair platform, and we look forward to supporting the company as it
continues to expand its capabilities during its next phase of growth.”
Craig Gallagher, Chief Executive Officer of MBAe, added: “This
significant investment from Blackstone is very positive news for MB
Aerospace as a company, for our staff and for our customers. It provides
us with a huge opportunity to invest in our people and to continue to
grow both organically and through acquisition both in the US and in
Europe.”
Blackstone was advised by Simpson Thacher & Bartlett LLP. Arlington was
advised by Moelis and Company LLC and Kirkland & Ellis LLP.
About Blackstone
Blackstone is one of the world’s leading investment firms. We seek to
create positive economic impact and long-term value for our investors,
the companies we invest in, and the communities in which we work. We do
this by using extraordinary people and flexible capital to help
companies solve problems. Our asset management businesses, with over
$330 billion in assets under management, include investment vehicles
focused on private equity, real estate, public debt and equity,
non-investment grade credit, real assets and secondary funds, all on a
global basis. Further information is available at www.blackstone.com.
Follow Blackstone on Twitter @Blackstone.
About MB Aeropsace
MBAe is a leading Tier 1 supplier of precision aero-engine components
directly serving major aero-engine OEMs and leading tier 1 suppliers.
MBAe’s focus on complex high value-add fabricated assemblies and
large-diameter, high-value machined components leverages a depth of
technical and engineering understanding across the full range of
materials, manufacturing processes and customer approvals to be a truly
trusted and scaled partner to the main aero-engine OEMs. MBAe has
developed a highly attractive global operating footprint across four
main manufacturing hubs in the U.S., Poland and the U.K. with proximity
to all key OEM and Tier 1 customers.
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