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Merex Group Acquires Kellstrom Defense Aerospace, Inc.

Companies mentioned in this article: Merex Group

CAMARILLO, Calif. -- (BUSINESS WIRE) -- The Merex Group today announced that it has completed the acquisition of Florida based Kellstrom Defense Aerospace Inc.

The acquisition of Kellstrom Defense creates a combined business with an expanded bundle of capabilities for legacy aircraft sustainment and unmatched channel access to serve the needs of global defense customers.

Kellstrom Defense is a leader in providing distribution, life extension, maintenance repair and overhaul (MRO), and logistics support solutions to operators in the U.S. and over 30 countries. Headquartered in Miramar, FL, Kellstrom Defense has more than 150 employees engaged in the support of C130, P3, F-16, F-18 , 707 defense derivative aircraft and other legacy U.S. defense platforms. Kellstrom also maintains a logistics center in Macon, GA and forward stocking locations in Cambridge, U.K. and Australia.

The Merex Group is recognized in the international defense industry as a leader in “Total Solutions” support of legacy platforms for an integrated bundle of parts and services. Merex specializes in logistics, distribution and supply of spare parts, in-house product engineering and specialty manufacturing, FAA and military repair and overhaul capability at its ALCO Services subsidiary, repair management, and overall project management. Merex capabilities are focused on F-5, T-38, F-16, C-130, P-3 and numerous rotary wing platforms including MD-500, Bell 212/412, AH-1, and UH-1.

The combination of these two companies will focus on providing a strong customer–centric approach for global operators of U.S. manufactured legacy fixed and rotary wing fleets. The overall Merex Group will look to leverage long–term relationships with global defense customers to match fleet and product-line specific solutions to meet each customer’s aftermarket needs.

Merex Group CEO Chris Celtruda comments, “The addition of Kellstrom to the Merex Group of companies adds significant breadth of capability that supports our strategic growth plans and the needs of our mutual customer base. We expect to rapidly integrate the Kellstrom Defense business and focus on connecting our combined sustainment solutions to the needs of the global operators of these important platforms.”

“We are excited to move forward as part of the Merex team,” said Kellstrom Defense President Scott Campbell. “This combination will enable us to offer unprecedented service and leverage the engineering, manufacturing, and MRO capabilities that the Merex Group has developed to offer our customers enhanced aftermarket solutions.”

Merex Group has partnered with a group of investors, led by Dubin Clark & Company, Inc., to complete this transaction. Financial terms of the transaction have not been disclosed. Merex Group has been advised by SunTrust Robinson Humphrey for this transaction, with GE Capital Markets serving as lead arranger on senior debt financing, and mezzanine debt provided by Babson Capital. The combined companies are expected to exceed $150 million in total global sales for the 2014 calendar year.

“This transaction reaffirms the opportunity we see to drive consolidation and scale in the global defense aftermarket space. The opportunity to support a strong management team and well-positioned strategy continues to be embraced by our investor base,” said Michael Hompesch, a Partner at Dubin Clark.

About Merex Group:

The Merex Group is a global provider of comprehensive support for U.S. manufactured legacy defense platforms including aircraft, helicopters and their respective engines. Supporting more than 35 armed forces worldwide that operate legacy defense platforms, Merex Group's "Total Support" approach of providing spares/components, repair/overhaul management, and project management of systems upgrades, has been instrumental in the Company's success in this growing market. The Merex Group is headquartered in Camarillo, CA and is a Dubin Clark portfolio company. The Merex Group is comprised by Merex Inc., Commerce Overseas Corporation and ALCO Services. Further information is available at www.merexinc.com.

About Kellstrom Defense:

Kellstrom Defense is an industry leader in aftermarket logistics and inventory support for the F-16, C-130, P-3, F-15, F-18, and 707 Defense Derivative aircrafts. Kellstrom Defense is a globally-recognized provider of inventory management solutions and aftermarket services, specializing in the defense aircraft aftermarket support. Kellstrom Defense is dedicated in delivering innovative and value-added distribution and customized programs. Some of these programs include, but are not limited to: OEM Distribution, Component Repair and Overhaul, Supply-Chain Management and Provisioning. Further information is available at www.kellstromdefense.com.

About Dubin Clark:

Dubin Clark & Company, Inc. is a private investment firm headquartered in Greenwich, Connecticut with a 30-year history of investing in control-position, middle-market buyouts and building businesses in partnership with the management teams of its portfolio companies. Best known for building CompUSA from a two-store operation into a multibillion-dollar national chain, Dubin Clark has a national reputation for helping successful middle-market companies reach new levels of sales and earnings. The organization has a philosophy of maintaining each company's values, independence and culture, and building on what has already been achieved. Further information is available at www.dubinclark.com.


Copyright © Business Wire 2014
Contact:

Merex Group
Hayley Armstrong
Sr. Director of Marketing and Communications
Tel: 954-538-2448
hayley.armstrong@kellstrom.com
www.merexinc.com
www.kellstromdefense.com