Aerostar Aerospace, a Nautic Partners Portfolio Company, Completes Strategic Acquisition of Warmelin Precision Products

Providence, RI

Aerostar Aerospace (“Aerostar”), a leading manufacturer of high-complexity, close-tolerance machined components used in critical aircraft systems, announced today that it has acquired Warmelin Precision Products (“Warmelin”). Aerostar, headquartered in Phoenix, AZ, is a portfolio company of Nautic Partners VII, L.P. and Nautic Partners VII-A, L.P., which partnered with management to acquire Aerostar in October 2015.

Headquartered in Hawthorne, CA, and founded in 1968, Warmelin is an advanced manufacturer of highly complex precision components for the global aerospace industry. Warmelin specializes in producing geometrically demanding parts using state-of-the-art, high-speed, five-axis machining techniques, allowing for rapid fabrication of critical components at a competitive cost. Specific areas of focus include hydraulic, actuation, and structural components.

Warmelin represents Aerostar’s first add-on acquisition as a part of the company’s strategy of identifying and integrating high-performing suppliers in the fragmented aerospace machined component industry. Together, the two businesses operate a combined facility footprint of over 100,000 square feet, have geographic diversity, and serve an array of blue-chip aerospace customers. Warmelin will provide the Aerostar platform with a strong presence in the Southern California region where the company hopes to continue its acquisition strategy.

Joe Muklevicz, CEO of Aerostar, said, “We are extremely happy to welcome Warmelin into the Aerostar family, and look forward to helping to support their growth alongside ours in the years to come. We believe that Warmelin’s adjacent capabilities will make the combined business a much stronger partner to our customers. We look forward to continuing the growth of our platform organically and through further acquisitions.”

Doug Horton, President of Warmelin, said, “A special thank you to our excellent Warmelin team for enabling our continued success. Warmelin is very excited to be working with both Aerostar and Nautic Partners as we continue to build the enterprise into the future.”

CriticalPoint Partners, LLC acted as Warmelin’s financial advisor. Twin Brook Capital provided financing for the transaction.

About Aerostar

Founded in 1983, Aerostar Aerospace Manufacturing, LLC is an AS9100, ISO9001 precision component manufacturer of machined parts used in commercial aircraft, primarily in engines and in auxiliary power units. Aerostar has developed a niche 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.  The company is headquartered in Phoenix, AZ.

Certain statements about Nautic made by portfolio company executives herein are intended to illustrate Nautic’s business relationship with such persons, including with respect to Nautic’s facilities as a business partner, rather than Nautic’s capabilities or expertise with respect to investment advisory services. Portfolio company executives were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company roles, and in certain cases are also owners of portfolio company securities and/or investors in Nautic-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.