O2 Investment Partners has invested in Vertical Aerospace through its portfolio company First Class Air, an integrated aviation aftermarket business. Aerospace and defense are among the hottest sectors for private equity, benefiting from 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, with specialties including nacelles and thrust reversers, flight control surfaces, and composite and metallic structural repair.
First Class Air said the deal combines Vertical Aerospace's structural repair, engineering and fabricated part manufacturing expertise with its existing distribution, MRO, DER, PMA, teardown and exchange capabilities. 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.
Separately, 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 Pacific Ag has a proven business model and unique scale in a highly fragmented crop residue supply chain. Ara sees room to grow within the company's existing supply sheds and surrounding regions, and will pursue M&A selectively where it can unlock synergies and cost savings. He said the main challenge, market fragmentation, is also the opportunity, since a scaled operator can lower the cost of producing a ton of crop residue while turning a field cost into income for farmers.
Source: PE Hub · Summarized by HeadlinesBriefing