XLCS Partners advises 1st Choice Aerospace in sale to VSE Aviation, Inc., a subsidiary of VSE Corporation

CHICAGO, IL – XLCS Partners, Inc., an independent investment banking firm providing M&A advisory, capital raising, and debt advisory services, is pleased to announce that its client, 1st Choice Aerospace, Inc. has been acquired by VSE Aviation, Inc., a subsidiary of VSE Corporation (NASDAQ: VSEC).

1st Choice provides MRO services, including pneumatics, fuel, electro-mechanical, electrical accessories, crew seats, interiors, lavatory systems, oxygen systems, cargo systems, and containers. 1st Choice is a Federal Aviation Administration and European Aviation Safety Agency Part 145 certified component repair station with locations in Florida and Kentucky. 1st Choice customers include commercial and cargo airline operators, end users, integrators that manage airline repairs, Original Equipment Manufacturers, suppliers, and other MRO providers.

The initial purchase price paid at closing was $112 million in cash.  The purchase agreement also includes potential post-closing payments of up to $40 million if 1st Choice surpasses certain thresholds of gross profit (as defined in the purchase agreement) during 2019 and 2020. VSE Aviation has retained the senior management team through employment contracts to continue management of 1st Choice operations and its approximately 200 employees.

“Joe Contaldo and the team of professionals at XLCS were essential to our successful transaction,” said Mario Catalano, a senior officer and shareholder of 1st Choice. “They are the perfect blend of experience and size, while still maintaining customer focus. With their guidance and expertise, we found the perfect partner for our business.”

Established in 2015 by VSE Corporation, VSE Aviation is a family of companies that includes Air Parts & Supply Co., CT Aerospace LLC, Kansas Aviation LLC, Prime Turbines LLC, VSE Aviation GmbH, and VSE Aviation Singapore PTE LTD that specialize in MRO services and parts supply for commercial, corporate and regional aircraft.

VSE Corporation (NASDAQ: VSEC) is a diversified products and services company providing logistics solutions with integrity, agility, and value. VSE is dedicated to making its federal and commercial clients successful by delivering innovative solutions for vehicle, ship, and aircraft sustainment, supply chain management, platform modernization, mission enhancement, and program management, and providing energy, IT, and consulting services.

XLCS Partners acted as the exclusive advisor to 1st Choice Aerospace and the transaction was led by Joe Contaldo, Partner. The transaction was completed on January 10, 2019.

 

About XLCS Partners

XLCS Partners, Inc. is an independent investment banking firm that provides M&A advisory, capital raising and debt advisory for select clients globally. Middle market companies and private equity funds rely on our creative solutions, thoughtful insight and truthful advice when considering exiting their companies, making strategic acquisitions, partnering with private equity sponsors and raising debt or equity capital.

PBExpo Announcement

Aviation, Aerospace, and Defense Investment Bank to Exhibit and Present at PBExpo in Fort Lauderdale, Florida on May 16 & 17, 2018

XLCS Partners is pleased to announce it will be an exhibitor (Booth #835) at PBExpo in Fort Lauderdale on May 16 & 17. PBExpo, presented by PartsBase, provides an interactive environment that integrates the aviation, aerospace, and defense industries with technology and ecommerce solutions. Speakers include Mark Fox, Senior Manager, Amazon Web Services; Alex Hunter, Former Global head of Online, Virgin Group; and Terry Jones, Founder, Travelocity.

Joe Contaldo, Partner at XLCS, will be presenting on “M&A and Private Equity in the Aviation & Aerospace Industry” on Thursday, May 17th at 1:15 pm. Joe leads XLCS’ global Aviation, Aerospace, and Defense practice group which focuses on all aspects of the industry including OEM equipment manufacturing, component and aircraft MRO, parts manufacturing and distribution, FBO and airport services, government contractors, technology providers, logistics, and communications.

Title: M&A and Private Equity in the Aviation & Aerospace Industry

Date: Thursday, May 17, 2018

Location: Room 113/114 (Greater Broward Convention Center)

Time: 1:15 PM – 2:00 PM

Description: 2018 is shaping up to be yet another banner year for M&A across the Aerospace, Aviation and Defense sectors. Adding fuel to the fire are private equity firms, with over $1T of investment capital, competing to invest in quality companies.

Whether you are thinking about selling your company, growing with a private equity firm, or are just starting to put in a plan in place, this quick presentation will provide a high level overview of the entire process. We will discuss timing, market conditions, active players, and pitfalls. We will also address how private equity firms structure recapitalizations to allow owners to take chips off the table while still maintaining operational control and participating in the future growth of their company.

If you would like more information on XLCS Partners or to schedule a meeting during the event, please contact Joe Contaldo at jcontaldo@xlcspartners.com or 773-610-2070.

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About XLCS Partners

XLCS Partners, Inc. is an independent investment banking firm that provides M&A advisory, capital raising, and debt advisory for select clients globally. Middle market companies and private equity funds rely on our creative solutions, thoughtful insight, and truthful advice when considering exiting their companies, making strategic acquisitions, partnering with private equity sponsors, and raising debt or equity capital.

About PBExpo

PBExpo is the only interactive environment that integrates the aviation, aerospace, and defense industries with technology and ecommerce solutions. PBExpo will consist of multiple forums, over two days, which will allow participants to discuss and demonstrate the newest innovations available in the marketplace, attend educational seminars presented by industry leaders, walk a vast and expansive industry-focused exhibit hall, and provide direct feedback and roadmap suggestions on the PartsBase website. The event is open to all parties who buy, sell, manufacture or repair aircraft parts, or those involved in B2B and B2C ecommerce and technology solutions.

 

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