Prospect Partners has sold Velocity Aerospace to Precision Aviation Group, a portfolio company of GenNx360

Velocity Aerospace

Velocity is a leading independent maintenance, repair and overhaul (MRO) platform with differentiated component repair capabilities for major commercial airlines, freighters and regional airlines. Velocity is headquartered in Frisco, Texas, and operates three Federal Aviation Administration (FAA) repair stations in Burbank and Van Nuys, California and Fort Lauderdale, Florida. Velocity offers a comprehensive set of MRO capabilities, including decades of experience in avionics, accessories, instruments, antennas and cockpit panel manufacturing.

The Deal

Prospect Partners engaged Lincoln given its expertise within the aerospace MRO sector, deep buyer relationships and detailed strategy to navigate the impact of COVID-19 on the business. After a comprehensive process to both strategic and financial acquirers, Prospect was sold to Precision Aviation Group (PAG), expanding its avionics and designated engineering representative (DER) repair portfolio as well as enabling entrance into the cockpit panel manufacturing space.

Our Perspective

Tom Murphy, Managing Director and co-head of Lincoln’s aerospace and defense sector efforts, commented, “We are thrilled to have achieved a successful outcome for Velocity and Prospect in a very challenging market given COVID-19. We utilized our deep and active knowledge of the MRO sector, enhanced by consistent dialogue and current deal flow to approach the most aggressive MRO buyers. This allowed us to achieve the highest price and best terms by crafting and positioning Velocity on a post-COVID-19 run rate basis as the industry continued to recover.”

Prospect Partners

Prospect is a leading lower mid-market private equity firm based in Chicago, Illinois. The firm focuses exclusively on partnering with entrepreneurial management teams in high potential companies and takes a hands-on, partnership-oriented approach to accelerating growth and building enterprise value. Since 1998, Prospect has invested in more than 150 unique companies to build more than 50 platforms in a broad range of niche markets, including manufacturing, value-added distribution, food and consumer, and specialty business and consumer services.

Precision Aviation Group

PAG is a leading provider of products and value-added services to the aerospace and defense industries worldwide. With 16 repair stations, and over 650,000 square feet of sales and service facilities in the United States, Canada, Australia, Singapore and Brazil, PAG uses its 22 distinct business units and customer-focused business model to serve aviation customers through two business functions: aviation supply chain and its trademarked Inventory Supported Maintenance, Repair and Overhaul (ISMRO®).

GenNx360 Capital Partners

GenNx360 Capital Partners is a private equity firm focused on acquiring mid-market business-to-business services and industrial companies. GenNx360 invests in companies with proven and sustainable business models in expanding industries, with the objective of implementing value-enhancing operational improvements to accelerate growth, deliver efficiencies and generate strong financial returns. Target industries include outsourced business services, industrial machinery and components, industrial services, automation and industrial technology, packaging products, equipment services, environmental services and food ingredients / equipment / services. GenNx360 was founded in 2006 and is headquartered in New York City, New York.

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