Houlihan Lokey Advises Kellstrom Defense

Houlihan Lokey is pleased to announce that Kellstrom Defense, Inc., a portfolio company of PNC Mezzanine Capital, has been acquired by Aero Precision, a portfolio company owned by a fund managed by Odyssey Investment Partners, LLC. The transaction closed on February 27, 2020.

Kellstrom Defense is the leading global provider of aftermarket and legacy defense aircraft sustainment solutions to governments, militaries, repair facilities, and support agencies worldwide. The company serves as a critical link in the aerospace aftermarket value chain between military aerospace parts and accessories manufacturers and a highly fragmented customer base. Kellstrom services more than 20 military aircraft platforms, which collectively represent over 15,000 aircraft flown by more than 50 global militaries. The company is headquartered in El Segundo, California, with additional facilities in North America, Australia, and the United Kingdom.

PNC Mezzanine Capital is a capital provider with expertise financing buyouts, recapitalizations, and consolidation strategies. The firm invests in companies operating in a wide range of industries, including business services, manufacturing, and value-added distribution businesses. Since 1989, PNC Mezzanine Capital has been a stable, thoughtful junior capital partner for private equity firms, independent sponsors, entrepreneurs, and management teams. PNC Mezzanine Capital has made more than 160 investments in support of over 300 transactions.

Odyssey Investment Partners, LLC, with offices in New York and Los Angeles, is a leading private equity investment firm with an established track record of partnering with skilled managers to transform middle-market companies into more efficient and diversified businesses with strong growth profiles. Odyssey makes majority controlled investments in industries with a long-term positive outlook and favorable secular trends. The firm has a long history of investing in the aerospace industry, including proprietary parts businesses, MRO repair companies, and aftermarket distributors.

Houlihan Lokey served as the exclusive financial advisor to Kellstrom Defense and led the structuring and negotiation of the transaction. This transaction underscores Houlihan Lokey's long-standing reputation as a leader in aerospace aftermarket services advisory and credentials as a premier advisor to the aerospace and defense sector.