Completion of Héroux-Devtek Acquisition Signifies Growth for Platinum Equity in Aerospace Sector

Platinum Equity Completes Acquisition of Héroux-Devtek

In a significant move within the aerospace manufacturing industry, Platinum Equity has announced the completion of its acquisition of Héroux-Devtek Inc. (TSX: HRX), a prominent international player known for its expertise in aerospace products. This acquisition positions Platinum Equity strategically in a sector that is vital not only for aviation but also for defense applications.

Louis Samson, Co-President of Platinum Equity, expressed his enthusiasm for this acquisition, highlighting the company's respect for Héroux-Devtek and its talented workforce. He noted the entrepreneurial spirit and proactive culture at the company, which aligns with Platinum Equity's growth objectives. With a commitment to retaining the Longueuil headquarters of Héroux-Devtek and investing in their research and development facility in Saint-Hubert, Platinum Equity aims to foster innovation while capitalizing on the strong foundation established by the existing team.

Héroux-Devtek is recognized as the world's third-largest manufacturer of landing gear systems and has a rich history embedded in the aerospace landscape, particularly in Montreal, a city renowned for its aerospace heritage. Samson acknowledged the vital role Héroux-Devtek plays in the regional economy and emphasized the importance of continuing partnerships with key local investors, such as Caisse de dépôt et placement du Québec (CDPQ) and the Fonds de solidarité FTQ (FTQ). Both have contributed to the financial backbone of this acquisition and are expected to be integral partners moving forward.

Delara Zarrabi, Managing Director at Platinum Equity, highlighted the company’s diversified portfolio, which includes both defense and commercial aerospace programs. She is optimistic about the potential for growth not just organically but also through future acquisitions to expand their market presence. Platinum Equity has plans to develop a pipeline of mergers and acquisitions (M&A) opportunities specifically tailored for Héroux-Devtek, taking advantage of various operational and financial strategies to promote efficiency and expand their offerings.

In light of recent developments, Platinum Equity has expressed continued interest in enhancing its investments within Canada. Samson, having roots in Québec City, is particularly attuned to the market dynamics and opportunities available in the Canadian business landscape. With several companies already within their portfolio, including Husky Technologies based in Ontario, Platinum Equity is poised to make a significant impact across various sectors.

Over the past two decades, Platinum Equity has established itself as a leading investment firm, managing over $48 billion across more than 50 operational companies globally. Their focus on mergers and acquisitions is underscored by a proven track record of over 450 completed integrations. The acquisition of Héroux-Devtek not only expands Platinum Equity’s aerospace capabilities but also reinforces their commitment to long-term investment in the sector.

Legal facilitation through Stikeman Elliott LLP and Latham & Watkins LLP has ensured a smooth acquisition process, while BMO Capital Markets served as financial advisors. The completion of this acquisition marks the beginning of a promising new chapter for both Héroux-Devtek and Platinum Equity, with the potential for substantial growth and innovation in the aerospace sector.

Conclusion

The acquisition of Héroux-Devtek Inc. by Platinum Equity represents a notable consolidation within the aerospace industry, showcasing how strategic investments can nurture growth and technological advancements. With a strong vision for the future, both entities are set to navigate the evolving challenges and opportunities within this vital sector of the global economy.