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by Stephen Perry on Nov 21, 2023
Janes Capital Partners served as Exclusive Financial Advisor to Pacific Precision Products (“PPP”) in its sale to Zodiac Aerospace. Located in Southern California, PPP is a leading developer and manufacturer of oxygen systems and components for mid and large-cabin business jet original equipment manufacturers (OEMs) and completion centers.
THE CHALLENGE
Janes Capital Partners was retained by Pacific Precision Products (PPP), a leading developer and manufacturer of oxygen systems and components for mid and large-cabin business jet original equipment manufacturers (OEMs) and completion centers. The sale process coincided with concerns about the uncertain, cyclical and concentrated nature of the business jet industry. Other challenges included the steep growth projections and size of the business.
THE SOLUTION
Janes Capital Partners ran an aggressive M&A process, targeting global A&D primes and leading private equity groups. Utilizing a robust analysis of platform trends supported by multiple industry experts, along with highly detailed sales projections by shipset and platform, Janes Capital Partners mitigated the concerns regarding the business jet industry and validated potential growth opportunities. Janes Capital Partners highlighted PPP’s compelling market niche and its strong, unique competitive position. In addition, Janes Capital Partners’ industry focus and extensive knowledge of the Aerospace & Defense industry enabled it to clearly articulate the highly-complex and valuable attributes of this compelling business.
THE RESULTS
Through significant, competitive tension between both domestic and international buyers, Janes Capital Partners achieved a number of upward purchase price revisions. Janes Capital Partners eventually negotiated a premium valuation and favorable contractual terms with a strategic acquirer. A definitive agreement was signed three weeks after the execution of the letter of intent, while maintaining robust optionality for our client. The partnership between PPP and Zodiac will ideally position PPP to further develop the market for single-use oxygen system for business jets, military and commercial aircraft.