Aviation & Aerospace Class C Parts Market
February 1 2012
OVERVIEW
The past twelve months have seen increased M&A activity and consolidation
along the entire aviation supply chain. The Class C parts space is one sub-sector
of the market where Avascent sees strong evidence of this broader trend.
For example, on January 9, 2012 B/E Aerospace announced its intention to buy
UFC Aerospace Corp, a Class C aerospace parts distributor, for $400 million in
cash. The acquisition will make B/E a roughly $1 billion player in the Class C
market, adding capabilities in kitting, supply chain management and manufacturing
as well as a portfolio of traditional distribution relationships.
This is not the first transaction in the space: B/E previously acquired M&M (2001),
Honeywell Consumables Solutions (2008) and the fastener distribution arm of
Satair (2010), while Wesco acquired Airtechnics (2008). However, the size and
timing of this most recent deal signals a renewed drive towards consolidation in
the sector. It also points to an underlying confidence in the third party distribution
business model and provision of outsourced inventory management services to OEMs, Tier 1/2 suppliers and MRO providers.
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