Pfingsten Partners Buys Turbine Maker
The private equity firm also closes a $525 million fund and launches distressed debt initiative.
January 21, 2009
Pfingsten Partners, the Chicago-based private equity fund, bought Aviation Power & Marine, a Floridian distributor of aeroderivative gas turbine engine parts and related services. AP&M also coordinates gas turbine engine leases and component repair services.
Terms were not disclosed; Farlie Turner & Co. served as exclusive financial advisor to the seller. The deal, which closed Dec. 31, 2008, is the third deal Pfingsten wrapped up to close the final quarter of the year and its twelfth investment from its $285 million fund.
"AP&M's niche in the growing power infrastructure sector made this an attractive opportunity for Pfingsten," said Thomas S. Bagley, founder and senior managing director of Pfingsten Partners. "Favorable industry dynamics and Pfingsten’s conservative capital structure enabled us to close the transaction even in today's tight credit markets."
The buy comes on the heels of the announcement that it also succeeded in launching Sangamon Industries, a special purpose vehicle that will make investments in underperforming or distressed manufacturing and distribution businesses. Pfingsten Partners, with its $525 million fourth fund, will build a diversified portfolio of approximately 20 platform investments in middle market manufacturing, distribution and business service companies, with transaction values from $15 to $100 million, the PE shop announced. For an environment allegedly down on private equity, Pfingsten’s success in raising a fund nearly 85% larger than its prior one marks a victory for the firm.
“Our tradition of putting a minimum of 50% equity into the capital structures of our platform companies enabled us to round out fund III with three new platform acquisitions in the fourth quarter of 2008,” said Bagley. “With certainty to close, a 20-year history of creating value through operational improvements and global capabilities, we can confidently begin to deploy fund IV capital even in this difficult M&A environment.”
Mark G. Essig will lead the initiative at Sangamon as president and chief executive. Essig will also be the CEO of AP&M.
For more information on related topics, visit the following:
