AE Industrial Partners Completes Sale of Kellstrom Aerospace to VSE Corporation

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.

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Source: AE Industrial Partners, LP