O2 Investment Partners has invested in Vertical Aerospace through its portfolio company First Class Air, an integrated aviation aftermarket business. The move comes as aerospace and defense remain among the hottest sectors for private equity, supported by rising passenger numbers and increased government spending on defense.
Vertical Aerospace provides MRO, engineering and fabricated part manufacturing services for commercial, cargo and military aircraft. Its specialties include nacelles and thrust reversers, flight control surfaces, and composite and metallic structural repair. First Class Air said the deal combines Vertical Aerospace's capabilities with its existing distribution, MRO, DER, PMA, teardown and exchange operations. Vertical Aerospace will keep serving customers with its current team while gaining access to the wider network. The group serves freighter, commercial, regional, military and business aviation customers worldwide.
In a separate deal, Ara Partners announced it has acquired a majority interest in Pacific Ag, a crop residue supply and logistics company headquartered in the Columbia River Basin in the Pacific Northwest. Pacific Ag serves farmers and customers in more than 30 states, together with its affiliate Reinert Hay Company. Allen Rickard, principal on Ara's infrastructure team, said the firm sees plenty of runway to grow within the company's existing supply sheds and surrounding regions. Ara will also pursue M&A selectively where Pacific Ag's know-how and scale can unlock synergies and cost savings.
Rickard said Pacific Ag brings together the characteristics Ara looks for in infrastructure investments, including durable economies of scale and a large base of hard assets. The deal highlights private equity interest in fragmented supply chains where scale can drive consolidation.
Source: PE Hub · Summarized by HeadlinesBriefing