MCM Capital Partners is seeking companies manufacturing and distributing product and components serving the aerospace markets.
Seeking Companies with these Characteristics Serving Aerospace
- Sales $15-$50 million and/or EBITDA $2-$8 million
- Gross Margins: Manufacturers +30% or Value-Added Distributors +20%
- Industry Certifications are attractive: AS9100 and/or ITAR
- Low-volume, high-mix runs maintaining tight tolerance parts and high precision
- Companies serving corrosive, harsh, and/or critical environments
- Companies providing engineered and value-added solutions
MCM’s Aerospace Experience
- Andover Corporation, andovercorp.com, acquired in 2018, is a manufacturer of highly engineered, custom components and filters utilizing thin film optical coatings serving Aerospace and Defense, among other markets.
- Performance Plastics, performanceplastics.com, acquired in 2015, is a niche, technical custom injection molder utilizing high performance plastics manufacturing tight tolerance and high precision parts. It serves the Military & Defense, Aerospace, Medical, Industrial and Energy markets.
- RMB Products, rmbproducts.com, acquired in 2010, is a rotational molder and laser sinterer of engineered products for niche applications serving Aerospace, Biopharma, Semiconductor, and Chemical Processing.
- Dexmet, dexmet.com, divested in 2011, manufactures precision expanded metals, foils and thermoplastics acting as lightning strike protection material for the Aerospace and Defense markets.
- MCM Senior Operating Partner, Mr. Harry Shimp, a degreed mechanical engineer, has operated several companies primarily serving Aerospace and Defense markets throughout his career.
- MCM Founder and Senior Managing Partner, Mr. Mark Mansour, has evaluated hundreds of aerospace related companies and served on the boards of Performance Plastics, RMB Products, and Dexmet.
- MCM Professionals attend industry tradeshows where Aerospace is a dominant end market
Favorable Aerospace Industry Trends
- Expanded US and International Defense budgets will drive future growth
- Commercial aircraft orders have experienced record levels in the last decade and show no signs of slowing down
- Vertical take-off, electric propulsion, unmanned drones, digitization and the focus on autonomy are all growing markets attracting non-traditional aerospace competitors
- Significant barriers to entry exist due to high industry regulations
- Companies with a greater breadth of services and vertically integrated will benefit from OEM’s reducing their supplier base
- The industry is fragmented with many relatively small manufacturers allowing for a “buy and build” investment strategy