Two private equity firms are investing to facilitate a merger between gas turbine engine components manufacturer Paradigm Precision and aerospace components manufacturer Whitcraft Group. The partnering equity firms — Clayton, Dubilier & Rice (CD&R) and Greenbriar Equity Group — announced the definitive agreements Nov. 30. Financial terms of the transactions were not disclosed.
The combination of Ohio-based Paradigm and Connecticut-based Whitcraft will create a “scaled and diversified manufacturer of complex, high-tolerance components used in commercial and military aviation engines” that expects to be a leading supplier in the aerospace industry, according to a news release from CD&R. Paradigm is currently majority owned by global investment firm Carlyle, while Whitcraft is a Greenbriar portfolio company.
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“We are excited to work with the Whitcraft and Paradigm management teams, alongside Greenbriar, a leading industrials investor, to enhance the continued execution of their customer-centric operations and growth strategy,” CD&R funds Operating Advisor Ray Conner said. “We look forward to bringing together the best of both of these companies by driving operational improvements and an increased capability set that we believe will benefit customers and the commercial and military aviation engine market at large.”
Conner, formerly President and CEO of Boeing Commercial Aviation, will become chairman of the combined company upon consummation of the transactions, according to the release.
“Over the last five years, our partnership with and investment from Greenbriar has advanced our strategy and enhanced our focus on operational excellence, and we believe this next step with Paradigm and CD&R will unlock even greater improvement opportunities for our customers and our employees,” Whitcraft CEO Doug Folsom said.
“We look forward to this combination with Whitcraft and support from CD&R and Greenbriar, which we believe will enable us to strengthen our mission-critical offerings to even more customers around the world,” Paradigm President and CEO Steve Croke said. “We remain committed to delivering innovative solutions to help solve complex manufacturing challenges while also continuing to foster a world-class working environment for our employees.”
Both transactions are expected to close in early 2023.