Unical Aviation Acquisition: Key Details, Impact, and What Comes Next

Platinum Equity's acquisition of Unical Aviation marks a significant move in the aerospace industry. This strategic purchase aims to bolster Unical's operational resources and financial stability, positioning it for growth as air travel rebounds. The acquisition underscores the importance of maintaining a robust supply chain in the global aerospace market, enhancing Unical's role as a key player.

What Is Unical Aviation?

Founded in 1990, Unical Aviation specializes in aircraft storage, disassembly, asset purchasing, and USM parts and repair solutions. The company stands out with its extensive inventory of over 1 million unique part numbers and 90 million parts in stock. Unical's global reach includes facilities in the UK, EU, and USA, and it is recognized for quality and reliability by aviation regulators like the FAA and EASA. Their integrated services and 24/7 AOG support further differentiate them in the market.

Who Acquired Unical Aviation?

Platinum Equity is a global investment firm specializing in mergers, acquisitions, and operations. The company manages over $48 billion in diversified assets and has completed more than 450 acquisitions. Platinum Equity's key services include private equity investments and alternative credit strategies, providing both financial and operational support to companies across various industries. With a unique M&A&O strategy, the firm is recognized for its ability to create long-term value and transform companies into market leaders.

When Was Unical Aviation Acquired?

Platinum Equity completed the acquisition of Unical Aviation on August 16, 2021. This strategic move occurred as the aerospace industry was beginning to recover from the COVID-19 pandemic. The timing is significant as it positions Unical to capitalize on the anticipated increase in demand for aircraft parts and services, aligning with broader industry trends of consolidation and supply chain optimization during the post-pandemic recovery phase.

Why Was Unical Aviation Acquired?

• Market Expansion: The acquisition of Unical Aviation allows Platinum Equity to significantly expand its footprint in the global aerospace aftermarket. Unical's extensive network of facilities in the United States, Europe, and Asia, along with its service to over 2,100 aviation customers, provides a robust platform for growth. Additionally, Platinum Equity plans to use Unical as a base for future acquisitions in the aviation maintenance, repair, and overhaul market.
• Technology Integration: Unical Aviation brings advanced technological capabilities to Platinum Equity's portfolio. Unical Aero, an FAA Parts Manufacturer Approval company, offers design, engineering, and manufacturing of non-OEM, FAA-approved parts. Furthermore, Unical 145, an FAA 145 Repair Station, specializes in mechanical, hydraulic accessories, aero structures, landing gear, and composites, enhancing Platinum Equity's technological edge in the aerospace sector.
• Competitive Advantage: The acquisition strengthens Platinum Equity's competitive position by leveraging Unical's vertical integration and extensive inventory. Unical's ability to provide quick-to-market services through its integrated repair stations and its vast inventory of over 85 million parts and 1.3 million unique part numbers make it one of the largest suppliers of new and used serviceable material in the global aerospace industry. This extensive reach and capability provide a significant competitive edge.

Acquisition Terms

• Acquisition Price: The financial terms of the acquisition were not disclosed.
• Payment Method: The payment method is not specified.
• Key Conditions or Agreements:
  • The acquisition includes Unical Aviation, Unical MRO, Unical 145, and Unical Aero.
  • Unical Defense Inc. is not included in the sale.
  • Dori Konig from Platinum Equity will serve as interim CEO during the transition.
  • The transaction is expected to close during the third quarter of 2021.
  • Unical will operate as a standalone company within Platinum Equity’s portfolio.
  • Platinum Equity plans to invest in Unical’s growth, including its people, processes, systems, and inventory.

Impact on Unical Aviation

The acquisition of Unical Aviation by Platinum Equity has led to notable changes in operations and management. Unical will continue to operate as a standalone company within Platinum Equity’s portfolio, with Dori Konig serving as interim CEO during the transition. This move aims to leverage Platinum Equity's extensive experience in the aerospace sector to enhance Unical's operational resources and financial stability. The focus is on investing in Unical’s growth, including its people, processes, systems, and inventory, to accelerate its market position in the global aerospace aftermarket.

Regarding product offerings and services, Unical will maintain its extensive inventory of aircraft parts and components, with a renewed emphasis on quick-to-market services due to its vertically integrated repair stations. The acquisition is expected to bolster Unical's ability to meet the increasing demand for aircraft parts as air travel rebounds. Employee reactions have been generally positive, with optimism about the new financial investment and growth opportunities. Customers, including major airlines, are likely to benefit from improved service continuity and expanded offerings. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.