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AIP bags US assets of debt-riddled aerospace manufacturer Hampson

21 Nov 2012

Mid-market private equity firm American Industrial Partners has picked up the US operating facilities of aerospace manufacturer Hampson Industries following the company’s collapse into administration.

The company, which makes components for aircraft builders including Boeing and Airbus, over-egged its growth strategy and ended up with a $55m debt pile it has struggled to pay back.

AIP bought the assets, which it has renamed AIP Aerospace, through its $717.5m fifth fund which closed in December last year.

The business has more than 1,100 employees across ten manufacturing facilities in California, Michigan and Texas, with sales of about $210m.

AIP partner Joel Rotroff said, “AIP has a long history of successfully buying industrial businesses, such as AIP Aerospace, and partnering with management to drive growth.

“We feel fortunate to have found a business with such a unique set of competencies.

“We are excited by the outlook for the commercial aerospace industry and look forward to working with management to drive growth and margin improvement.”

AIP’s closure of Fund V last year saw it smash its $500m target to hit its hard cap.

The fund seeks to acquire control positions in North American-headquartered industrial companies with sales ranging from $100m to $500m.

Around 15 per cent of total commitments to the fund came from new capital outside of North America, the firm said, with endowments making up 30 per cent, insurance companies 26 per cent, fund of funds and gatekeepers 24 per cent and pensions/sovereign funds 20 per cent.

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