A Derby headquartered global aerospace and defence supply chain service provider has agreed a $1.9 billion deal which will see it merge with a US firm.
Pattonair, which has its head office on Pride Park, has reached an agreement to merge with Wesco Aircraft Holdings.
Both companies are regarded as world leaders in supply chain management for the aviation and defence sectors.
According to Pattonair and Wesco, the merger will benefit their combined customer base through increased scale and even greater efficiency.
Pattonair, which employs around 600 people in Derby and a similar number in its operations throughout the rest of the world, provides tailored supply chain management solutions to blue-chip engine and airframe manufacturers.
It already works with some of the biggest brands in the aerospace and defence industries, including clients such as Rolls-Royce and BAE Systems.
It has dedicated facilities in Singapore, China, Poland, Brazil, France, Italy, Canada and five cities in the US.
According to chief executive Wayne Hollinshead, the deal with Wesco will significantly expand its US presence, as well as reinforce its operations in Europe, the Middle East, Africa and Asia Pacific.
He said: “This is great news for our company and customers and will create new avenues for growth and expansion.
“Wesco is an outstanding business with an impressive track record for innovation and customer service, so we are excited about the prospects of working together.”
Formed in the US in 1953, Wesco is one of the world’s leading distributors and providers of comprehensive supply chain management services to the global aerospace industry.
Currently operating from 50 locations across 17 countries, its services range from traditional distribution to the management of supplier relationships, quality assurance, kitting, just-in-time delivery, chemical management services, third-party logistics or fourth-party logistics and point-of-use inventory management.
Todd Renehan, chief executive officer at Wesco, said: “This is the right transaction for our shareholders, customers and employees.
“It is a strong validation of our customer value proposition and it will allow us to find new and innovative ways to bring more value to customers, enhance relationships with suppliers and create additional opportunities for employees.”
Pattonair is part of an international portfolio of companies owned by Los Angeles-based Platinum Equity.
Louis Samson, a partner at Platinum Equity, said Wesco was well-positioned to benefit from long-term trends in the aerospace and defence industries.
He said: “Bringing Wesco and Pattonair together will create a truly global enterprise, benefiting the combined customer base through increased scale and access to new technologies.”
The merger is expected to complete by the end of this year, subject to Wesco shareholder approval and regulatory clearances.
