Supply chain management (SCM) services provider Wesco Aircraft has signed a definitive merger agreement to be acquired by an affiliate of Platinum Equity for $1.9bn.
Upon the completion of the transaction, Wesco will be merged with Platinum Equity portfolio company Pattonair, a UK-based provider of SCM services for the aerospace and defence industries.
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Under the agreement, Platinum Equity would pay $11.05 a share in cash to Wesco shareholders.
Wesco Aircraft CEO Todd Renehan said: “This transaction is a strong validation of our customer value proposition, and it will allow us to find new and innovative ways to bring more value to customers, enhance relationships with suppliers and create additional opportunities for employees.”
Pattonair CEO Wayne Hollinshead said: “This is great news for our company and our customers and will create new avenues for growth and expansion.”
Equity financing for the transaction would be funded by affiliates of Platinum Equity Capital Partners IV while debt financing will be provided by Bank of America Merrill Lynch.
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By GlobalDataPlatinum Equity Partner Louis Samson said: “Wesco’s broad customer base and industry-leading capabilities have positioned it well to benefit from long-term trends in the aerospace and defence industry.
“Bringing Wesco and Pattonair together will create a truly global enterprise, benefiting the combined customer base through increased scale and access to new technologies.”
Morgan Stanley and JP Morgan Securities have been appointed as financial advisers to Wesco, and Latham & Watkins is serving as legal counsel to the company.
Pattonair appointed Willkie Farr & Gallagher as its legal counsel for the transaction.
Subject to Wesco shareholder and regulatory approvals, the deal is expected to be completed by the end of this year.
