Case Study

Aero 3

Aero 3 is a leading provider of wheel and brake maintenance, repair and overhaul services to the commercial, corporate and general aviation industry. The company also provides landing gear, battery and miscellaneous component maintenance and repair services and through its sister company, Hemico, provides Parts Manufacturer Approval (PMA) engineering services and Designated Engineering Representative (DER) approved repairs. The company benefits from a broad North American footprint of six locations in Manchester, New Hampshire; Atlanta, Georgia; Indianapolis, Indiana; Phoenix, Arizona; Montreal, Quebec; and Calgary, Alberta.

Headquarters
Manchester, NH
Fund
Fund III
Acquired
2019
Company Website
www.aero3inc.com
Status
Exited
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Key Strategic Initiatives
Completed 4 add-on acquisitions
Expanded footprint to 11 locations globally
Broadened aircraft coverage
Generated robust revenue growth and multiple-fold EBITDA expansion post-acquisition and through pandemic lows
Secured highly strategic Collin’s distributorship
Transaction Sourcing
  • Identified aircraft MRO as an attractive sector with recurring revenue characteristics, non-deferrable nature of offering, and a large addressable market
  • Proactive investment thesis allowed GenNx to move quickly during Aero 3 auction and enter investment with a targeted list of add-on acquisition targets
  • Identified Aircrafters in 2016, which Aero 3 eventually acquired as an add-on in 2022
Investment Highlights 
  • Vertically integrated, “one-stop-shop” global wheel & brakes aviation services provider
  • Non-deferrable, regulated, and contracted services
  • Supports the world’s leading aircraft operators from a global footprint
  • Highly strategic OEM partnerships
  • Strong management team with a proven track record of growth
Key Initiatives Completed
  • Executed targeted buy and build strategy, completing 4 strategic add-on acquisitions focused on the following initiatives: 1) expand geographically, 2) add narrow/wide-body aircraft diversification and 3) expand capabilities
  • Transformed aircraft mix from a primarily regional provider (~60% of Revenue in 2019) to a diversified platform across Narrow and Wide-body aircrafts (Regional ~20% of Revenue at exit)
  • Entering the investment months before the start of the COVID-19 pandemic that drove a ~50% work order decline, GenNx provided strategic guidance and support to stabilize workforce and capitalize on M&A opportunities
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