Pattonair, Wesco Merge in $1.9B Deal for Aerospace & Defense Supply Chain Mgmt Service Push

Jeff Brody

Pattonair, a portfolio company of Platinum Equity, and Wesco Aircraft Holdings have merged through an approximately $1.9B deal in a move to grow customer base and footprint in the global supply chain management services market.

The combined company will be headquartered in Valencia, Calif., and will support original equipment manufacturers that are focused on the aerospace and defense sectors, Wesco said Thursday.

Wesco — which offers hardware, electronic components, chemicals and other aerospace products — stopped trading on the New York Stock Exchange Monday. U.K.-based Pattonair's customers have included Airbus, BAE Systems and United Technologies Corp. (NYSE: UTX).

Todd Renehan and Wayne Hollinshead will lead the combined firm as CEO and president, respectively.

The combination seeks to maintain more than 644K stock keeping units that support production of military and commercial aircraft systems.

Morgan Stanley & Co. and J.P. Morgan Securities acted as Wesco's financial advisers on the transaction while Latham & Watkins served as its legal counsel.

Platinum Equity received legal counsel services from Hughes Hubbard & Reed. The investment firm also worked with Willkie Farr & Gallagher on the legal aspect of the deal's financial terms and with Baker & McKenzie on legal regulatory and corporate matters.

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