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YEAR IN REVIEW 2019
YEAR IN REVIEW
2019
AE Industrial Partners is a private equity firm specializing in Aerospace,
Defense & Government Services, Power Generation and Specialty Industrial
markets. AE Industrial Partners invests in market-leading companies that
can benefit from our deep industry knowledge, operating experience, and
relationships throughout our target markets. Learn more at www.aeroequity.com.
FIRM OVERVIEW AND TARGET MARKETS
2019 YEAR IN REVIEW | 1
AEI CURRENT PORTFOLIO
AEROSPACE
2019 YEAR IN REVIEW | 32 | AE INDUSTRIAL PARTNERS
DEFENSE & GOVERNMENT SERVICES
POWER GENERATION SPECIALTY INDUSTRIAL
YEAR IN REVIEW
2019 was another successful year for AE Industrial Partners! We closed a record number of deals and continue to build a unique, diverse portfolio...
16 Closed Deals1
7 New Platforms1
9 Add-on Acquisitions
42 Closed Deals since 20151
$730 Million of
Equity Capital Invested1,2
100% in Our Target Markets
We continued to invest in our team...33
Total Employees7
Operating Partners~25%
Increase in Headcount
We also continue to expand our brand and range of investment opportunities with the formation of two new vehicles
• AE Industrial Partners Structured Solutions – AEI Structured Solutions will pursue a strategy of investing in secured and unsecured debt instruments, preferred stock and non-control, common equity investments in our target markets that are sourced through AEI’s existing proprietary origination efforts
• AE Industrial Partners Aerospace Aggregator – AEI Aerospace Aggregator will pursue a strategy of acquiring commercial aviation aircraft and engine assets and structuring leasing solutions designed to produce current income and capital appreciation for investors
2020 is off to another strong start. We look forward to continuing to build our market presence and momentum.
I N D U S T R I E S
1 Includes American Pacific which was signed December 28, 2019 and closed February 6, 2020.2 Includes equity capital deployed from Fund I and II as well as co-investment from limited partners.
SUMMARY OF 2019 INVESTMENT ACTIVITY
NEW PLATFORMS
2019 YEAR IN REVIEW | 54 | AE INDUSTRIAL PARTNERS
NEW ADD-ONS
AIM MRO is a leading manufacturer and supply chain manager of highly engineered consumable repair products and materials used primarily in the aerospace engine aftermarket. AIM MRO has differentiated itself by offering a “one-stop-shop” serving aerospace engine and gas turbine Maintenance, Repair and Overhaul (“MRO”) facilities worldwide in their demand for highly engineered consumable parts and materials used in the repair of flight critical engine components. AIM MRO takes an analytical approach to integrating the multi-site material spend of global engine component repair operations in order to deliver significant value and customized solutions for its customers.
Target Market: Aerospace Headquarters: Provo, UT
Target Market: Aerospace Headquarters: Cincinnati, OH
Alpine Air is a leading Part 135 air cargo operator with a long and distinguished history providing its customers with safe and reliable air cargo transportation services primarily throughout the Mountain Region of the Western United States. Alpine operates a growing fleet of over 45 aircraft, and it recently developed a proprietary Supplemental Type Certificate (“STC”) to convert the Beechcraft 1900D aircraft from passenger configuration to cargo configuration, making it the largest single pilot cargo aircraft in the world. This innovative STC offers Alpine a unique competitive advantage which should enable the Company to capture greater share in its market.
PLATFORM ACQUISITIONS OVERVIEW
Acquired by: Belcan
Acquired by: Belcan
Acquired by: Resolute Technologies
Acquired by: Gryphon Technologies
Acquired by: BHI Energy
Acquired by: Gryphon Technologies
Acquired by: Gryphon Technologies
Acquired by: Belcan
Acquired by: Belcan
a Belcan company
I N D U S T R I E S
6 | AE INDUSTRIAL PARTNERS 2019 YEAR IN REVIEW | 7
Target Market: Aerospace Headquarters: Brattleboro, VT
Resolute Industrial is the largest independent provider of temporary HVAC&R solutions in North America, providing commercial HVAC&R rental services through a national fleet of large to small tonnage cooling equipment and heaters. Heating equipment is manufactured in-house under the Company’s proprietary Tioga brand. In addition, the Company remanufactures HVAC&R compressors and provides refrigerant storage and recovery solutions, and offers power generator rentals. The Company services a broad and growing range of end users and OEMs across a diverse group of end markets, including industrial manufacturing, aviation, energy, power, healthcare, education, and telecommunications.
Target Market: Specialty Industrial Headquarters: Indianapolis, IN
Columbia Helicopters is a leading OEM and provider of aviation, manufacturing, and MRO services to a variety of end markets including government and defense, firefighting, construction, and on-shore oil & gas. Founded in 1957 and based in Aurora, Oregon, Columbia is known for its industry-leading reliability, safety, and innovation. Columbia holds many aviation authorizations, including a Department of Defense (DoD) Commercial Airlift Review Board (CARB) certification, which allows the Company to perform outsourced government transportation, among other mission-critical operations.
G.S. Precision, founded in 1958 and based in Brattleboro, VT, is a leading manufacturer of complex, high precision components and specialty hardware used in a variety of mission critical aerospace and defense applications. The Company utilizes state of the art, proprietary manufacturing processes and technologies to deliver components with high degrees of complexity and the extremely tight tolerances required for aerospace engines and defense systems. The Company manufactures a diverse set of components, used in both new production and the aftermarket, in materials ranging from high temperature nickel alloys and titanium to stainless steel and aluminum. G.S. Precision’s five strategic locations across the United States and Mexico combined with its unmatched manufacturing capabilities and special processes allow the Company to deliver industry-leading quality and performance for its demanding customers and applications.
PLATFORM ACQUISITIONS OVERVIEWPLATFORM ACQUISITIONS OVERVIEW
Target Market: Defense & Government ServicesHeadquarters: Aurora, OR
Target Market: Defense & Government ServicesHeadquarters: Cedar City, UT
American Pacific is a leading specialty materials manufacturer of critical chemicals for some of the U.S. Government’s most vital military and space programs. Founded in 1955, American Pacific produces highly technical materials through proprietary processes for use in missile defense, space launch, pharmaceutical, and fire suppression applications. American Pacific has built a world-class reputation for reliability and quality in markets where failure is not an option. The Company operates out of a state-of-the-art manufacturing facility based in Cedar City, Utah.
Gryphon Technologies Inc. is a trans-formational leader in providing digital engineering and technical solutions and services to national security organizations specializing in science & technology, research & development, defense-related platforms and systems, providing integra-tion, systems architecture, advanced and systems engineering, program manage-ment, test and evaluation, cybersecurity and logistics.
SPOTLIGHT BUY AND BUILD STRATEGY
Added Capabilities
Acquisition adds
critical scale and scope
in platforms and capabilities
with Navy customer.
Acquisition provides
high-end, differentiated capabilities in
key domains such as directed energy,
hypersonics, cyber and AI.
Acquisition provides additional
capabilities in machinery control
systems, and enhances Gryphon’s cyber offerings for its
Navy customer.
Acquisition expands capabilities in high-
priority, high-growth domains critical to
DoD customers, including cloud
migration & support and data warehousing
& management.
2019 YEAR IN REVIEW | 98 | AE INDUSTRIAL PARTNERS
PLATFORM ACQUISITIONS OVERVIEW
Change in revenue
~$170M to ~300M
Change in employees
~1,200 to ~1,600
Added customers
DARPA, DHS, USAF, DMA, NIH
Change from YE 2018 to YE 2019 through the three add-ons:
I N D U S T R I E S
Target Market: Defense & Government ServicesHeadquarters: West Berlin, NJ
Triman is a leading provider of distribution, supply chain and repair management solutions to the military aftermarket. Founded in 1995 and based in West Berlin, NJ, Triman has mastered the business of partnering with OEM suppliers and their military customers to form the critical link between the product and the end-user in the supply chain. Today, Triman represents a growing list of over 40 OEMs and provides a full suite of value-added services including inspection and testing, packaging, labeling, marking, processing, export management, contract administration and repair management services. The Company’s proven track record, reputation for quality and responsiveness, and deep list of certifications and accreditations have allowed it to establish a leading market position and exclusive partnerships in its marketplace.
CDI Government Services was acquired in 2018.
PRIMARY CONTACTS
10 | AE INDUSTRIAL PARTNERS
David RoweMANAGING [email protected](561) 372-7826
Charlie Compton [email protected](561) 372-7834
Peter Schumacher [email protected](561) 372-7822
Jeffrey HartVICE PRESIDENT [email protected](561) 372-7837
Michael GreeneMANAGING [email protected](561) 372-7827
Kirk [email protected](561) 372-7835
Trey BivinsVICE PRESIDENT [email protected](561) 372-7836
Bryan McElweeVICE PRESIDENT [email protected](561) 372-7831
Jon NemoSENIOR [email protected](561) 372-7832
Charlie [email protected](561) 372-7823
Rob HarperVICE PRESIDENT [email protected](203) 653-8205
Tess Sprechman HEAD OF INVESTOR [email protected](561) 372-0967
www.aeroequity.com
