AE Industrial Partners Completes Sale of Kellstrom Aerospace to VSE Corporation

Rhea-AI Summary

AE Industrial Partners has completed the sale of Kellstrom Aerospace Group to VSE (NASDAQ: VSEC) for $200 million. Kellstrom is a leading aftermarket solutions provider for the commercial aerospace engine sector, serving over 30 OEMs and approximately 800 customers across 75 countries. Under AE Industrial's ownership, Kellstrom expanded through three strategic acquisitions: The Aircraft Group, Transaero Commercial Distribution, and Vortex Aviation. The company provides new parts, surplus material, and technical services to airlines, MROs, and lessors, maintaining one of the world's largest aircraft parts inventories.

Positive

• Acquisition price of $200 million represents significant transaction value
• Large customer base with over 800 clients across 75 countries
• Strong market position serving 30+ OEMs
• Successful expansion through three strategic acquisitions

Negative

• None.

Insights

M&A Analyst

This $200 million acquisition of Kellstrom Aerospace by VSE represents a significant strategic move in the aerospace aftermarket sector. The deal strengthens VSE's position in the commercial aerospace engine aftermarket with Kellstrom's extensive network serving over 30 OEMs and 800 customers across 75 countries. Key value drivers include:

• Kellstrom's technical service capabilities and global distribution network
• Established relationships with major aerospace OEMs and MROs
• Recent strategic acquisitions enhancing service offerings

The transaction price appears reasonable given Kellstrom's market position and growth trajectory through both organic expansion and acquisitions. For VSE shareholders, this acquisition provides immediate scale in the commercial aerospace aftermarket and diversifies revenue streams beyond their existing business lines.

Aerospace Industry Analyst

The acquisition positions VSE strategically in the growing commercial aerospace aftermarket sector. Kellstrom's comprehensive service portfolio, including new parts distribution, surplus material management and technical services, addresses critical needs in the aerospace maintenance ecosystem. The timing is particularly advantageous as the commercial aviation sector continues its post-pandemic recovery, with increasing demand for aftermarket services and parts. The integration of Kellstrom's capabilities with VSE's existing infrastructure should create operational synergies and enhance market competitiveness.

BOCA RATON, Fla.--(BUSINESS WIRE)-- AE Industrial Partners, LP (“AE Industrial”), a private equity firm specializing in National Security, Aerospace, and Industrial Services, today announced that it has completed the sale of Kellstrom Aerospace Group, Inc. (“Kellstrom”), a diversified global distributor and service provider supporting the commercial aerospace engine aftermarket, for $200 million to VSE Corporation (“VSE”) (NASDAQ: VSEC), a leading provider of aftermarket distribution and repair services.

Kellstrom is a leading full-service aftermarket solutions provider of value-added distribution and technical services for the commercial aerospace engine aftermarket. Differentiated by a highly technical, high-touch global sales and product line management organization, Kellstrom supports over 30 OEMs and approximately 800 customers, including airlines, air cargo operators, lessors, OEMs, and MROs across 75 countries. Under AE Industrial’s ownership, Kellstrom expanded both organically and through three capability-enhancing strategic acquisitions, including The Aircraft Group, Transaero Commercial Distribution and Vortex Aviation.

“We are grateful for the support, guidance, and resources AE Industrial has provided throughout our partnership,” added Oscar Torres, President & CEO of Kellstrom. “Working closely together we have enhanced our operations, achieved significant business growth, incorporated new maintenance capabilities and expanded our records management services and distribution lines.”

“It has been a privilege to work alongside our management team to create a leading, independent distributor of flight critical products and technical services to the commercial aerospace aftermarket,” said Charlie Compton, Managing Partner at AE Industrial. “We wish the Kellstrom team continued success as they move forward into their next chapter with VSE.”

Perella Weinberg Partners served as exclusive financial advisor to Kellstrom on the transaction.

About AE Industrial Partners:

AE Industrial Partners is a private investment firm with $5.6 billion of assets under management focused on highly specialized markets including national security, aerospace and industrial services. AE Industrial Partners has completed more than 130 investments in market-leading companies that benefit from its deep industry knowledge, operating experience, and network of relationships across the sectors where the firm invests. With a commitment to driving value creation in partnership with the management teams of its portfolio companies, AE Industrial Partners invests across private equity, venture capital, and aerospace leasing.

About Kellstrom Aerospace:

Kellstrom Aerospace is an aerospace aftermarket business focused on providing new parts, surplus material and other technical services to airlines, MROs and lessors. Kellstrom Aerospace provides its customers with instant access to one of the world’s largest and most comprehensive inventories of new and pre-owned aircraft parts and offers world-class supply chain solutions, including new OEM parts distribution, consignment management, pre-owned parts distribution, repair management, overhauled rotable components, parts exchange, whole engine assets and fleet provisioning programs.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241202772287/en/

Media Contact:

Matthew Conroy

Stanton

(646) 502-3563

mconroy@stantonprm.com

Source: AE Industrial Partners, LP

FAQ

How much did VSE (VSEC) pay for Kellstrom Aerospace?

VSE (VSEC) paid $200 million to acquire Kellstrom Aerospace from AE Industrial Partners.

What companies did Kellstrom Aerospace acquire before being sold to VSE (VSEC)?

Under AE Industrial Partners' ownership, Kellstrom Aerospace acquired three companies: The Aircraft Group, Transaero Commercial Distribution, and Vortex Aviation.

How many customers does Kellstrom Aerospace serve after being acquired by VSE (VSEC)?

Kellstrom Aerospace serves approximately 800 customers, including airlines, air cargo operators, lessors, OEMs, and MROs across 75 countries.