Cronus has a long track record in the aerospace and defense industry, particularly the commercial and military jet engine sector.
From new engine parts to renovation to aftermarket service, we are familiar with most of the companies in the industry. Our Aerospace and Defense Forum is the Northeast’s premier venue for discussion topics in the industry.
We focus our practice on the Tier 1 and Tier 2 suppliers to the multinational Original Equipment Manufacturers (OEMs), including Pratt and Whitney, Rolls Royce, General Electric, Sikorsky, Airbus, Boeing, and the U.S. military. Our typical client has revenues ranging from $10 to $125 million, and many of these companies are family owned and operated. Private equity firms and foreign multinationals have shown an increasing interest in the sector as well.
Participation in this sector is difficult for the new market entrant. The OEMs seek to maintain relationships with established firms with long-term relationships and proven quality and price. For that reason, start-ups are rare and mergers are common as firms continue to seek critical mass and economies of scale. Most companies build to print and have their own quality certifications. The OEMs have encouraged this trend as it leads to a more reliable supplier base and fewer contact points to manage in manufacturing procurement.
Due to the emphasis on fuel economy and the new generation of military aircraft, the business is showing growth after a generation of stagnation. The consolidation trend is expected to continue as higher standards and continuing cost pressure created opportunities for consolidation and financial restructuring. The aerospace and defense manufacturer will benefit from our industrial background, business relationships, experience, and ability to achieve a successful financing, acquisition or sale without untoward business disruption, enabling our client to remain focused on operations.