AE Industrial buys Powder Alloy to form specialty materials platform

AE Industrial Partners has acquired Powder Alloy Corp, establishing a specialty materials platform through the purchase of a manufacturer serving aerospace, gas turbine and other industrial markets, according to PE Hub. Financial terms and transaction structure were not reported by PE Hub.

Powder Alloy Corp produces highly engineered metallic, ceramic and thermal spray powders used in surface and joining applications, AE Industrial Partners announced, according to PE Hub. The company’s products are used in both original equipment manufacturer and aftermarket applications, including in the aerospace and gas turbine sectors.

The acquisition places AE Industrial in a segment tied to components that require specialized material performance. Surface and joining applications refer to processes in which engineered materials are applied to, or used to connect, parts where reliability and durability are central to end use. PE Hub described the acquired business as supporting mission-critical applications.

Powder Alloy Corp was formed in 1973, PE Hub reported. Its product base includes metallic powders, ceramic powders and thermal spray powders, giving AE Industrial a platform in specialty materials rather than a single-product industrial asset.

For private equity sponsors, a platform company often serves as the initial operating business around which further investment, commercial expansion or additional acquisitions may be built. PE Hub reported that AE Industrial established such a platform with the Powder Alloy acquisition, but did not report any additional planned acquisitions or operating changes.

AE Industrial Partners is the acquiring firm. Powder Alloy Corp is the acquired company. PE Hub classified the transaction in industrial and manufacturing deal activity.

This story draws on original reporting from PE Hub.