CLIENT
Aerospace Holdings, Inc. (“GroupAero”) is a critical provider of advanced engineering, design and manufacturing services to the commercial and defense aerospace markets. GroupAero consists of three companies, NC Dynamics located in Long Beach California; Valley Tool and Manufacturing located in Orange, Connecticut and NCDM, a maquiladora located in Mexicali, Mexico. These three operating companies have been providing aerospace components and assemblies, servicing military and civilian fixed wing and helicopter markets for over 30 years to companies located in the USA, Europe, and Asia.

SITUATION
Facing significant liquidity issues and a default with its secured and unsecured creditors, GroupAero sought to restructure its capital structure, raise additional liquidity, or execute a full sale starting in late 2016. GroupAero filed chapter 11 on March 28, 2017.

ENGAGEMENT
G2 served as the financial advisor to GroupAero pre-petition, providing M&A advisory services and served as GroupAero’s investment banker post-petition during the initial 363 process and private sale proceedings.

OUTCOME
The transaction was successfully executed via a complex, multi-stage process that included Harlow Aerostructures, LLC (“Harlow”) pursuing an acquisition of substantially all of GroupAero’s assets by credit bidding their ownership of GroupAero’s first lien debt within the context of a 363 sales process during the initial stages of the chapter 11. The proceedings were then converted to a private sale. “This transaction will reposition and strengthen the business for future growth and continued high customer service. G2 played a critical role in developing several transaction options as our financial advisor,” said Steve Woodhouse, President, NC Dynamics, Inc.

“We are pleased to see a successful outcome of the transaction for the entire GroupAero team, its employees, customers and vendors,” said Tom Thompson, Managing Director at G2 Capital Advisors.“This aerospace combination will strengthen GroupAero’s legacy as it continues to serve its longstanding customers.”