New York City-based Moelis Capital Partners (MCP) has acquired PATS Aircraft Systems, one of the largest aviation employers in Delaware.
PATS offers aircraft services, components and integrated systems to leading original equipment manufacturers , airline operators, ultra-high net worth individuals, governments and corporations worldwide.
Headquartered in Georgetown, Del., PATS has been in existence for nearly four decades and according to a Cape Gazette story has 300 employees. The company was owned by DeCrane Aerospace, but was spun off in 2010 as a separate company under the majority ownership of Wayzata Investment Partners. It was also recapitalized in 2011, a move that in proved its financial strength.
Aviation employment has been growing in Delaware with Delaware Technical and Community College expanding its programs geared at providing education and employment for PATS and other companies.
PATS, and subsidiary Hollingsead International, have provided auxiliary fuel systems and other integrated systems and specialty components to aircraft equipment manufacturers and aerospace industry suppliers.
In addition, PATS is a leading service provider for Boeing Business Jets and other aircraft, performing maintenance, modification and interior completions. Specialties include refitting Boeing 737 aircraft for long-distance travel with fuel tanks and interior modifications for governments, companies and wealthy families.
Sussex County and the state of Delaware have been working to extend the runway at Sussex County Airport so PATS can refit larger aircraft that are now coming out of airline service.
The company operates out of a single complex that includes seven hangar bays on Sussex County Airpark, with over 221,000 square feet of space.
“We are very excited about this partnership which we are confident will help us grow and better meet the needs of our customers,” said John Martin, CEO of PATS Aircraft Systems. “There is tremendous opportunity ahead and with MCP we have found a partner that is as passionate about the future as we are and excited to support the company in achieving its goals.” John will continue in his roles as President
and CEO and the other members of the PATS management team will remain in their current positions.
Jim Johnston, a Partner at MCP, said, “We were impressed by PATS’ strong leadership team, successful track record, heritage of innovation, blue-chip customer base and dynamic culture. The company has built a reputation for providing high-quality service to very demanding customers, employing a hands-on management style with an emphasis on meeting the customer’s expectation no matter what it takes. We’re particularly excited by the company’s growth prospects and we look forward to working with this talented management team.”
JetCapital and Propeller Investments served as buy-side advisors to MCP on the transaction, and Parr Brown Gee & Loveless served as counsel to MCP. PNC Bank, in continuance of its relationship with PATS, provided the senior debt financing.
Moelis Capital Partners (MCP), an affiliate of Moelis Asset Management, is a middle market private equity firm founded in 2007. MCP manages more than $870 million of private equity capital.
For more information, visit www.moeliscapital.com. For more information about PATS, visit http://www.patsaircraft.com.
