Wesco Aircraft merges with Pattonair

victoria@aviationnews-online.com
By victoria@aviationnews-online.com January 9, 2020 15:49

Wesco Aircraft merges with Pattonair

Wesco Aircraft, a distributor and provider of comprehensive supply chain management services to the global aerospace industry, has been acquired by an affiliate of Platinum Equity in a transaction valued at approximately $1.9 billion. At closing, Wesco Aircraft was combined with Platinum Equity portfolio company Pattonair, a provider of supply chain management services for the aerospace and defense industries based in the United Kingdom.

The combined company, which will be headquartered in Valencia following closing, becomes a $2.4 billion business with a global footprint in 17 countries and more than 4,000 employees. The combined company will serve more than 8,400 customers, including many of the world’s leading aerospace and defense original equipment manufacturers and their subcontractors. The combined company’s comprehensive portfolio of aerospace products will comprise more than 644,000 SKUs that are used in the production of commercial and military aircraft, including airframes, engines, hydraulic units, actuation systems and landing gear.

Todd Renehan, Wesco Aircraft’s Chief Executive Officer since 2017, has been named CEO of the combined company, and Wayne Hollinshead, Pattonair’s Chief Executive Officer since 2011, has been named President. 

Renehan said, “We have formed a highly diversified provider of end-to-end customisable supply chain solutions with greater scale, product range and purchasing ability. We plan to leverage these strengths, together with our robust value proposition and consistent delivery of service excellence, to be the go-to partner for bringing new products and technologies to the market.”

Hollinshead said, “We expect that our scale and reach, coupled with sophisticated inventory and supply chain management capabilities, will better position us to benefit from industry growth and drive greater operational efficiency. At the same time, we believe our broad footprint will enable us to align our service model with the needs of global customers, while enhancing their productivity through exceptional delivery performance.”    

Louis Samson, Platinum Equity Partner, said, “Wesco’s broad customer base and industry leading capabilities have positioned it well to benefit from long-term trends in the aerospace and defense industry. Bringing Wesco and Pattonair together will create a truly global enterprise, benefiting the combined customer base through increased scale and access to new technologies.”

As of January 9, 2020, Wesco Aircraft is privately held, and shares of Wesco Aircraft Holdings ceased trading on the New York Stock Exchange. 

Morgan Stanley and JPMorgan served as financial advisors to Wesco Aircraft, and Latham & Watkins provided legal counsel to Wesco Aircraft. Hughes Hubbard & Reed provided M&A legal counsel to Platinum Equity, Willkie Farr & Gallagher provided financing legal counsel to Platinum Equity, and Baker & McKenzie provided corporate and regulatory legal counsel to Platinum Equity. 

victoria@aviationnews-online.com
By victoria@aviationnews-online.com January 9, 2020 15:49