Private equity firm Platinum Equity LLC, through an affiliate, agreed to acquire Wesco Aircraft Holdings Inc. in an approximately $1.9 billion deal that would take the company private.
Under the terms of the deal, Wesco shareholders would receive $11.05 per share in cash. The offer price reflects a premium of about 27.5% to the 90-day volume-weighted average share price for the period ended May 24, the last trading day before media reports of a potential transaction involving the company.
Affiliates of private equity giant Carlyle Group LP and Makaira Partners LLC, as well as the Snyder Family Trusts, which are the three largest shareholders of Wesco, agreed to vote their shares in favor of the deal.
Platinum Equity is funding the transaction with committed equity financing from affiliates of Platinum Equity Capital Partners IV LP and committed debt financing from Bank of America Merrill Lynch. It will merge Wesco with its portfolio company Pattonair Ltd. upon deal closing.
The board-approved transaction is scheduled to close by the end of 2019, pending Wesco shareholder approval, regulatory clearances and other customary conditions.
U.S.-headquartered Wesco provides supply chain management services to the global aerospace sector. U.K.-based Pattonair also offers supply chain management services for the aerospace and defense markets.
Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are the financial advisers to Wesco, with Latham & Watkins LLP serving as its legal adviser. Hughes Hubbard & Reed LLP is the M&A legal adviser to Pattonair, and Willkie Farr & Gallagher LLP is its financing legal adviser.