Saturday, March 19, 2011

Board Slots: Peter Pace Seats Eight, plus One

General Peter Pace added another board seat.  His AAR Corp. slot came with restricted stock options.  It's Peter's eighth board position:
Berman Capital
SM&A Strategic Advisers
Pike Electric
ILC Industries
Pelican Products
AAR Corp.
AAR's Government and Defense Services division is the fastest growing segment and now provides the largest share of revenue. After appointing Pace to the board, AAR announced earnings:

Sales to government and defense customers increased 46% over last year and were principally driven by sales at the Company’s airlift services business, which was acquired in the fourth quarter of fiscal 2010, and growth at the Company’s defense logistics business.
It expounded on one large airlift order.
the Company announced that it had been awarded a task order under the U.S. Transportation Command’s latest long-term, multi-billion dollar Indefinite Delivery/ Indefinite Quantity contract for rotary-wing airlift in Afghanistan. The task order has a one-year initial term with four one-year renewal options and is valued at approximately $450 million over the five year term.

In the same quarter Peter Pace joined AAR's board, five investment firms took positions in the company.  Peter is a rainmaker:

Alger Fred Management Inc. bought roughly 5%.
Dimensional Fund Advisors LP bought 6%
Earnest Partners LLC took a 7% stake
BlackRock purchased 7.8%

BlackRock's Larry Fink recently noted, "markets like totalitarian governments."  Is the next best thing having a General on the board?

Invesco Ltd bought the biggest chunk at 9.2%

Invesco is synonymous with Wilbur Ross.   Ross and his PEU partners took $2.3 billion in FDIC cash to recapitalize BankUnited.  What about AAR makes him happy?  Fink and Ross can read the signs, $.  General Peter Pace must have it plastered on his backside  Where Peter sits, defense and government money appears.

Update 10-29-15:  Pace was appointed to Textura's board in December 2012