Platinum Equity to Acquire Global Aerospace Supply Chain Services Provider Unical Aviation

Aviation parts and components business to benefit from new operational resources and recapitalized balance sheet as air travel begins to rebound

LOS ANGELES (July 19, 2021) – Platinum Equity announced today it has signed a definitive agreement to acquire Unical Aviation Inc. and certain of the company’s affiliates (“Unical”), a leading provider of aircraft parts and components to the global commercial aerospace market, from affiliates of the company’s founders.

The acquisition includes Unical Aviation, Unical MRO, Unical 145 and Unical Aero. Unical Defense Inc., an affiliate that serves government defense contracts, is not included in the sale to Platinum Equity. The transaction is expected to close during the third quarter of 2021. Financial terms were not disclosed.

Platinum Equity, a Los Angeles-based global investment firm with more than $25 billion of assets under management, has substantial experience investing in supply chain and logistics businesses, including in the aerospace sector. The firm currently owns Incora, a global aerospace and defense supply chain service provider based in Fort Worth, Texas. Unical will operate as a standalone company in Platinum Equity’s portfolio.

With more than 85 million parts and over 1.3 million unique airframe and engine part numbers in stock, Unical is one of the largest suppliers of new and used serviceable material for the global aerospace industry. The company sources, re-certifies and resells aircraft parts to commercial airlines, cargo operators, aircraft lessors, and aviation maintenance, repair and overhaul (MRO) businesses. Unical is vertically integrated with its repair stations, providing a competitive advantage with quick to market service.

“Unical is one of the largest and most trusted suppliers of aftermarket parts and services to aviation customers around the world,” said Platinum Equity Partner Jacob Kotzubei. “As post-pandemic air passenger traffic rebounds and the air cargo market continues to grow, the need for available inventories of quality parts is expected to increase. The aviation industry also anticipates significant levels of fleet retirement, which will create ample levels of supply to meet that growth in demand. As a critical link in the aviation supply chain with more than 30 years of experience, we believe Unical’s value proposition will be more important than ever.”

Founded in 1990 and headquartered in City of Industry, CA, Unical has more than 450 employees and supplies aircraft parts and components to over 2,100 aviation customers around the globe through a network of dedicated facilities in the United States, Europe and Asia.

“We are excited to partner with the Unical team to build on the company’s impressive legacy,” said Platinum Equity Managing Director Dan Krasner. “With Platinum’s financial capacity and operational resources, we intend to accelerate Unical’s growth and significantly expand its position within the aerospace aftermarket. We will invest in the people, processes, systems and inventory required to help the company move forward stronger than ever as the commercial airline market recovers.”

Lazard is serving as financial advisor, Morrison & Foerster as legal advisor, and Alvarez & Marsal as restructuring advisor to Unical. Sheppard Mullin is serving as legal advisor to the seller. Morgan Lewis is serving as legal advisor to Platinum Equity on the transaction.

About Unical Aviation
Unical Aviation is an aftermarket parts and aviation solutions provider serving over 2,100 customers in 91 countries. Located at San Bernardino International Airport with two hangars totaling 125,000 square feet, Unical MRO is an FAA 145 Repair Station that provides parking, storage, maintenance, disassembly, and demolition for commercial and military aircraft. Unical 145 is an FAA 145 Repair Station specializing in mechanical, hydraulic accessories, aero structures, landing gear and composites for Boeing, Airbus, McDonnell Douglas and Bombardier platforms. Unical Aero is an FAA Parts Manufacturer Approval company with design, engineering and manufacturing capabilities of non-OEM, FAA approved parts and components.

About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $25 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O^® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.