By Nick Gilbert
Precision Castparts, an international manufacturer of intricate metal products and components, has acquired Klune Industries, a producer of intricate aluminum, steel, titanium and nickel aerostructures, from Vance Street Capital, a private equity firm based in Los Angeles. Terms of the deal were not revealed.
Klune Industries is a specialist in fabricating aerostructures such as wings, nacelles, and doors for the commercial market, and airframes, ground support, rotors, bomb racks, fuel tanks, and missile system components for the military market.
In early 2010, Vance Street purchased a majority stake in Klune Industries and initiated several plans to enhance operations. These initiatives included strengthening the management team, reducing the company’s debt, streamlining production processes through the deployment of Six Sigma protocols as well as integrating a strategic acquisition that considerably improved content on crucial commercial aerospace platforms, which include Boeing 737, 777 and 787.
As a result, Klune Industries’ revenues are nearly doubled and profitability is significantly increased, eventually making the firm an attractive target for Precision Castparts to acquire. The Klune Industries sale is the first from the current fund of Vance Street Capital.
Vance Street Capital’s Partner, Richard R. Crowell stated that in all its investments, the company finds the resources and operational expertise in order to help its portfolio companies achieve full potential and the optimum operating performance level. The company’s investment in Klune Industries is a corroboration of the successful implementation of this strategy. Crowell thanked the entire Klune management team for its hard work and contribution in the transformation of the company.