Aerostar Aerospace

Phoenix, AZ
Investment Amount: $1,475,000
Precision Machining & Complex Fabrication
Investment Date: December, 2017
“We reached out to CapX Partners for credit backed by our collection of high-quality equipment assets at Aerostar. CapX responded quickly with an attractive lease line that provided capital to grow our business. We appreciate CapX’s equipment knowledge and quick turn-around and look forward to building upon this relationship going forward.” Nick Vidnovic, Vice President, Nautic Partners

Investment Opportunity
Aerostar Aerospace is a world-class manufacturer of high-complexity, precision-machined parts for use by aerospace, defense, and commercial customers. Aerostar has developed a niche in fabricating close-tolerance components using challenging materials such as titanium, Inconel, and other hard-metal alloys. The company employs an experienced staff, including engineers and machinists with substantial experience in 3D modeling, design for manufacturability and new product introductions. As a result of its best of breed technical capabilities, Aerostar currently enjoys long-term contractual relationships with several marquee Tier-I aerospace customers and supports some of the largest and most rapidly growing platforms in commercial aerospace.

In October 2015, Nautic Partners acquired Aerostar. In order to grow and diversify the business, it then made subsequent acquisitions of Warmelin Precision Products and the Center Tool Company. With these acquisitions complete, Aerostar commenced a review of its operations looking to maximize performance across the company.

CapX Solution
Aerostar is well positioned to benefit from the long-term growth trends in the commercial air travel market as carriers upgrade and add to fleets around the world. CapX determined it could assist Aerostar by tapping into the equipment value of one of its machine systems, providing capital for the company’s ongoing growth through a lease line of credit.

“Aerostar is well-known in the industry as a go-to manufacturer of complex, hard metal parts and has established strong relationships with its customers. We were delighted to step in with capital to support Aerostar and Nautic as the Company pursues its growth strategy. We look forward to increasing our support of Aerostar for its new equipment needs in 2018 and beyond.” Steve Healey, Managing Director at CapX Partners