Key Takeaways
- • Audax Private Equity announced a minority recapitalization of portfolio company FDH Aero, led by NB Capital Solutions with funds advised by Neuberger Berman joining the ownership group as a significant minority investor; terms were not disclosed.
- • The equity infusion will fund FDH Aero's organic and inorganic growth and provide partial liquidity to its investor base, while Audax remains the control investor.
- • Audax first invested in FDH Aero alongside management in 2017; per the company, revenue has grown more than fifteenfold over the last seven years through add-on acquisitions and organic growth.
- • FDH Aero, headquartered in Commerce, California, supplies C-class aerospace and defense components to OEM and aftermarket customers from 14 countries and employs more than 1,200 people.
- • Jefferies and Harris Williams advised Audax and FDH on the transaction, with Kirkland & Ellis and Latham & Watkins acting as legal counsel.
Summary
Audax Private Equity has completed a minority recapitalization of FDH Aero, one of its portfolio companies, according to a Business Wire announcement dated May 9, 2024. The transaction was led by NB Capital Solutions, with additional funds advised by Neuberger Berman (together "NB") joining the ownership group as a significant minority investor. The companies did not disclose deal terms.
FDH Aero is a global supply chain partner for aerospace and defense companies, specializing in C-class components including hardware, electrical, chemical, and consumable products and services for original equipment manufacturer (OEM) and aftermarket customers. The company operates locations in 14 countries across the Americas, EMEA, and APAC, employs more than 1,200 people, and maintains over 650,000 square feet of inventory space, according to the company's profile in the release.
Audax first partnered with FDH Aero in 2017 through a transaction alongside management, with the aim of building a customer-focused leader in the global aerospace and defense supply chain market. Per Audax, the company has grown its top line more than fifteenfold over the past seven years, driven by add-on acquisitions that expanded its addressable market and organic initiatives that positioned FDH as a "one-stop-shop" for customers. The NB equity investment is intended to support continued investment in both organic and inorganic growth, while Audax retains control.
David Wong, Partner at Audax Private Equity, said the firm expects FDH to "extend its market leadership" in the aerospace and defense industry. Nikhil Krishnan, Managing Director at Neuberger Berman Capital Solutions, said the firm believes its investment will let FDH "take advantage of the tremendous opportunity set in front of the business." Scott Tucker, CEO of FDH Aero, said the investment will help the company enhance its value proposition to suppliers and customers.
Jefferies and Harris Williams served as financial advisors to Audax and FDH Aero. Kirkland & Ellis acted as legal advisor to Audax, and Latham & Watkins advised NB Capital Solutions.
FDH Aero is a global supply chain partner for aerospace and defense companies, specializing in C-class components including hardware, electrical, chemical, and consumable products and services for original equipment manufacturer (OEM) and aftermarket customers. The company operates locations in 14 countries across the Americas, EMEA, and APAC, employs more than 1,200 people, and maintains over 650,000 square feet of inventory space, according to the company's profile in the release.
Audax first partnered with FDH Aero in 2017 through a transaction alongside management, with the aim of building a customer-focused leader in the global aerospace and defense supply chain market. Per Audax, the company has grown its top line more than fifteenfold over the past seven years, driven by add-on acquisitions that expanded its addressable market and organic initiatives that positioned FDH as a "one-stop-shop" for customers. The NB equity investment is intended to support continued investment in both organic and inorganic growth, while Audax retains control.
David Wong, Partner at Audax Private Equity, said the firm expects FDH to "extend its market leadership" in the aerospace and defense industry. Nikhil Krishnan, Managing Director at Neuberger Berman Capital Solutions, said the firm believes its investment will let FDH "take advantage of the tremendous opportunity set in front of the business." Scott Tucker, CEO of FDH Aero, said the investment will help the company enhance its value proposition to suppliers and customers.
Jefferies and Harris Williams served as financial advisors to Audax and FDH Aero. Kirkland & Ellis acted as legal advisor to Audax, and Latham & Watkins advised NB Capital Solutions.
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