Carlyle Group is to provide funding to restructuring US-based Nordam to enable the aerostructures manufacturer and repair provider to emerge from Chapter 11 bankruptcy protection.
But the Siegfried family, which founded and still owns Nordam, will continue as a shareholder of the Tulsa-based company.
“The Siegfried family will retain its 50-year ownership and oversight of the business, and continue to lead the company forward,” Carlyle Group says.
No financial details of the transaction have been released; it is scheduled to be completed by June.
Carlyle Group says that it will provide equity and new debt financing to “de-lever the business and position the company for continued growth”.
Nordam entered Chapter 11 bankruptcy protection in 2018 and agreed in October a deal with Gulfstream covering the sale of the production line for nacelles on Pratt & Whitney Canada PW800 engines, in a bid to fund the restructuring efforts.
PW800 engines power Gulfstream’s G500 and G600 business jets.
Gulfstream
Carlyle Group says that Nordam has “highly differentiated composites capabilities” and provides “critical” MRO services to commercial, military and business aircraft operators.
The manufacturer employs around 2,500 staff across nine sites in Asia, Europe and North America.
Nordam chief executive Meredith Siegfried Madden describes the deal as an “important milestone… as we exit Chapter 11”.
She states: “With Carlyle’s deep industry, operational and financial expertise, we believe we will be well positioned to execute on our strategic plan, expand our business and take advantage of the many growth opportunities that lie ahead.”
Carlyle Strategic Partners managing director Evan Middleton foresees “significant opportunities for continued growth, both organically and through acquisitions” for Nordam.
He states that the financing house will “closely” work with Nordam’s management to “scale the business, expand into new end-markets and further develop the company’s composites capabilities”.
Source: FlightGlobal.com
