Houlihan Lokey Advises B&E Group

Houlihan Lokey is pleased to announce the sale of the OEM Manufacturing Division of B&E Group, a portfolio company of MPE Partners, to Cadence Aerospace (Cadence), a portfolio company of Arlington Capital Partners (Arlington). Houlihan Lokey served as the exclusive financial advisor to B&E Group. The transaction closed on October 31, 2019.

B&E Group is a leading manufacturer of complex and difficult-to-manufacture engine components for the commercial and military aerospace markets, with a focus on precision machining. B&E Group has a long history of solving customer challenges and providing complete manufacturing solutions, positioning the company as a trusted and reliable partner on some of the most important next-generation engine programs, including the LEAP, GTF, and F135-JSF engines. The company operates from two locations in Western Massachusetts, with 70,000 square feet of operations and approximately 150 employees.

Cadence Aerospace is an aerospace and defense group headquartered in Anaheim, California, committed to active engagement, aligned manufacturing and sourcing strategies, and the provision of industry-leading capabilities. Cadence supplies components, subassemblies, and assemblies to the world's leading manufacturers of aircraft, aerostructures, aeroequipment, engine, and other commercial aerospace and defense platforms.

Arlington Capital Partners is a Washington, D.C.-based private equity firm that has managed $4 billion of committed capital. The company is focused on middle-market investment opportunities in growth industries, including aerospace and defense, government services and technology, healthcare, and business services and software. Arlington's professionals and network have a unique combination of operating and private equity experience that enable it to be a value-added investor.

Houlihan Lokey's Aerospace, Defense & Government (ADG) practice is a leading M&A advisor to aerospace, defense, and government services companies in the United States. Since 2016, the firm has closed more than 65 transactions worth more than $10 billion in enterprise value. With a staff of approximately 30 investment bankers in Washington, D.C., London, and Los Angeles, Houlihan Lokey's ADG practice is among the largest dedicated industry banking groups worldwide. This transaction represents the firm's continued success within the aerospace and defense precision machining sector.