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Sun Capital to buy bankrupt aircraft engineer Pemco by September

6 Aug 2012

Bankrupt aircraft engineering company Pemco World Air Services has announced it will be bought by private equity firm Sun Capital Partners within the month.

The company, one of North America’s largest suppliers of maintenance and engineering services to commercial airlines, filed for Chapter 11 Bankruptcy in March after securing debtor-in-possession financing from Sun affiliate Avion Services Holdings.

Pemco said the financing would allow it to continue to meet ongoing obligations and payments to employees and suppliers throughout the bankruptcy process.

Pemco CEO William Meehan said, “This is a very positive development.

“It reaffirms the company’s strategy that it undertook in restructuring Pemco to emerge with its strongest ever balance sheet and excellent capital structure.

“This allows us to grow our business and remain an industry leader. I am very excited and firmly believe that our best days are ahead of us.”

The company also announced it had terminated a deal to sell its Tampa aerospace facility and other assets to Vision Technologies Aerospace, which it had agreed on 23 May.

A statement from VT parent ST Engineering said the deal had been cancelled “after certain closing conditions could not be fulfilled by the seller prior to the closing deadline.”

Charles Dianis from Sun Capital’s PR company Stanton was not immediately available for comment.

Last month Sun Capital also bought the personal and household care packaging business of UK company Rexam for $459m.

Silgan Holdings agreed a separate $250m for Rexam’s high-barrier food packaging arm, leaving the company to concentrate on its drinks packaging business.

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