Supply chain firm signs billion-dollar US merger deal
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Derby-based supply chain firm Pattonairis set to boost its presence in the global aerospace market after reaching a $1.9bn agreement to merge with US-based Wesco Aircraft Holdings.
The deal means Pattonair, which provides distribution and supply chain management services to the aerospace and defence sectors and employs 600 people in Derby, will significantly expand its US presence as well as reinforce its operations in Europe, the Middle East, Africa and Asia Pacific.
Wayne Hollinshead, Pattonair CEO, said: “This is great news for our company and customers and will create new avenues for growth and expansion.
“Wesco is an outstanding business with an impressive track record for innovation and customer service, so we are excited about the prospects of working together.”
Pattonair works with some of the biggest brands in the aerospace and defence industries, including clients such as Rolls Royce and BAE Systems.
Todd Renehan, chief executive of Wesco, said his company was excited at the prospect of working with Pattonair.
“This is the right transaction for our shareholders, customers and employees,” he said.
“It is a strong validation of our customer value proposition and it will allow us to find new and innovative ways to bring more value to customers, enhance relationships with suppliers and create additional opportunities for employees.”
Wesco was formed in the US in 1953 and currently operates from 50 locations across 17 countries.
Pattonair is part of an international portfolio of companies owned by Los Angeles-based Platinum Equity.
Platinum Equity Partner Louis Samson said Wesco was well-positioned to benefit from long-term trends in the aerospace and defence industries.
“Bringing Wesco and Pattonair together will create a truly global enterprise, benefiting the combined customer base through increased scale and access to new technologies,” he added.
The merger is expected to complete by the end of 2019, subject to Wesco shareholder approval and regulatory clearances.
Earlier this month, it was revealed that Pattonair’s move into a £19.3m new office and warehouse development in Derby has been put on hold.
TheBusinessDesk.com learned that, despite Derby City Council approving the £19.3m needed to build the scheme at Infinity Park Derby, the D2N2 LEP has stalled the move while it assesses the business case for the relocation.