Blackstone to Acquire MB Aerospace

MBAerospace - Monday, October 26, 2015

New York, New York, October 26th 2015.  Blackstone (NYSE:BX) and MB Aerospace (“MBAe”)  announced today that private equity funds managed by Blackstone have agreed to acquire MBAe, a leading Tier I engine component manufacturer and repair business, from Arlington Capital Partners.

MB Aerospace has facilities across the U.S., U.K., and Poland. The company has a well-balanced manufacturing model providing complex machined and fabricated assemblies into production and aftermarket applications across an installed base of 65 engine platforms. MBAe has secured strong positions on next generation engines that will soon come into production. The Company also operates a repair business to help reduce inventories for its customers as their focus increases on the full life cycle management of aero-engine assets.

MB Aerospace’s key customers include Pratt & Whitney, Rolls-Royce, General Electric, Boeing, United Technologies Aerospace Systems, Pratt & Whitney AeroPower, GKN, Mitsubishi Heavy Industries, and the US Department of Defense. The company’s experienced management team will remain in place and will continue to be led by Craig Gallagher, Chief Executive since 2003.

The transaction is expected to close later this year and is subject to customary regulatory approvals.

Bruce McEvoy, Managing Director at Blackstone, commented, “We are thrilled to have the opportunity to partner with such a high quality management team.  MB Aerospace is a best-in-class engine component manufacturing and repair platform, and we look forward to supporting the company as it continues to expand its capabilities during its next phase of growth.”

Craig Gallagher, Chief Executive Officer of MBAe, added: “This significant investment from Blackstone is very positive news for MB Aerospace as a company, for our staff and for our customers. It provides us with a huge opportunity to invest in our people and to continue to grow both organically and through acquisition both in the US and in Europe.”

Blackstone was advised by Simpson Thacher & Bartlett LLP. Arlington was advised by Moelis and Company LLC and Kirkland & Ellis LLP. 

About Blackstone
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with over $330 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at Follow Blackstone on Twitter @Blackstone.

About MB Aerospace

MBAe is a leading Tier 1 supplier of precision aero-engine components directly serving major aero-engine OEMs and leading tier 1 suppliers. MBAe’s focus on complex high value-add fabricated assemblies and large-diameter, high-value machined components leverages a depth of technical and engineering understanding across the full range of materials, manufacturing processes and customer approvals to be a truly trusted and scaled partner to the main aero-engine OEMs. MBAe has developed a highly attractive global operating footprint across four main manufacturing hubs in the U.S., Poland and the U.K. with proximity to all key OEM and Tier 1 customers. 

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