Arcline Buys Avantus Aerospace from Inflexion

US-based private equity firm Arcline Investment Management has agreed to acquire Avantus Aerospace, a significant global provider of C-Class components for the aerospace and defense sectors. This transaction marks the exit for European mid-market investor Inflexion, which initially backed the business nearly a decade ago.

Upon closing, Avantus Aerospace will be integrated into Arcline's existing portfolio company, Novaria Group, creating a more comprehensive offering within the aerospace supply chain. This strategic move by Arcline aims to leverage synergies and expand market reach for both entities.

Inflexion's journey with Avantus began in 2015 through a secondary buyout of Shimtech, a business later rebranded as Avantus Aerospace in 2020. During Inflexion's stewardship, the company navigated significant industry headwinds, including the grounding of the Boeing 737 MAX and the global pandemic. The firm supported a substantial business transformation encompassing financial restructuring, organizational enhancements, commercial strategy adjustments, and operational improvements, all guided by a newly appointed senior leadership team.

The growth trajectory of Avantus Aerospace was further accelerated by a series of strategic acquisitions during Inflexion's ownership. These bolt-on deals were instrumental in expanding the company's customer base and diversifying its product portfolio, ultimately strengthening its competitive position. Headquartered in California, Avantus operates eight facilities across the US and Europe, supplying essential components to major original equipment manufacturers (OEMs), Tier 1 suppliers, and distributors for both commercial and defense aircraft programs.

Flor Kassai, Managing Partner at Inflexion, commented on the successful exit, highlighting Avantus as a prime example of a platform company capitalizing on robust end-market demand. She emphasized the significant growth in scale, breadth, and capability achieved during their partnership. Catherine Richards, Partner at Inflexion, added that the aerospace sector's recent surge in demand provided a favorable environment for Avantus, which was strategically positioned to benefit. She credited operational investments, a disciplined M&A strategy, and a strong management team for building a formidable global market presence.

The aerospace components market, a critical segment within the broader industrials sector, has demonstrated resilience and is experiencing a strong recovery post-pandemic. Demand for new aircraft and increased defense spending globally are key drivers. Companies like Avantus, specializing in high-precision components such as shims and fasteners, are vital to the production and maintenance of aircraft fleets. This acquisition by Arcline underscores the continued investor interest in specialized industrial suppliers with strong relationships across the aerospace value chain.

The transaction is contingent upon the satisfaction of customary regulatory approvals before it can be finalized.