Extant Components Group
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An entrepreneur and former CEO of a middle market aerospace company wished to pursue a business plan focused on manufacturing electronic components, a market niche where M&A Capital had past experience.
- The CEO approached M&A Capital to both assist in developing the operating strategy and raise capital to execute the plan.
- The operating strategy included making acquisitions in a niche market in the aerospace industry, which required identification of a strong financial partner to enhance the new venture’s credibility as a buyer.
- During the initial months of M&A Capital’s engagement, we assisted the CEO in identifying potential capital providers that had an interest in providing acquisition and growth capital to this niche market.
- The entrepreneur elected to partner with Warburg Pincus to create Extant Components Group due to the firm’s experience and deep relationships in the aerospace industry, and ability to act as a value-added partner to build the business.
- Warburg Pincus agreed to provide a significant line of equity from Warburg Pincus Private Equity X, L.P., a $15 billion fund, to support the Company in its acquisition strategy and long-term growth plans.
- Shortly thereafter, the Company closed on its first platform acquisition, Symetrics Industries.