Monday, August 23, 2010

PEU's Court McKechnie Aerospace

McKechnie Aerospace's current owners, JLL Partners, are ready to monetize their affiliate. JLL paid $856 million for McKechnie in 2007. Sources say the private equity underwriter (PEU) wants more than $1.2 billion from interested parties, The Carlyle Group, Blackstone and GS Capital Partners.

A 50% gain in less than three years would be great for a 2007 private equity investment, given the frothy prices paid between 2006-2008. Apparently, commercial & military aerospace parts are an attractive market segment. How much of McKechnie's revenue and profits come from Uncle Sam, directly and indirectly?