CMI Acquires Systems 3
PHOENIX–(BUSINESS WIRE)–CMI announced today the acquisition of Systems 3, a leading manufacturer and supplier of flight critical components to the aerospace and defense industries. With the acquisition, CMI becomes the preeminent complex precision manufacturing partner for both commercial and defense focused OEMs.
“Systems 3 is a natural strategic fit with CMI. The combination significantly enhances CMI’s scale, technical capabilities and customer relationships, and Systems 3’s customers will benefit from CMI’s industry-leading vertically integrated and automated manufacturing capabilities,” said Mark McFeely, CEO of CMI. “We welcome the Systems 3 team to the CMI family and are very excited about CMI’s long-term prospects. This acquisition is a big step towards our goal of becoming the leading supplier to aerospace and defense OEMs worldwide.”
Systems 3 manufactures hundreds of complex and unique parts that are used in mission-critical applications and require the highest level of quality and reliability. Parts and components include flight safety components that are essential to the operations of leading rotary-wing platforms such as the AH-64 Apache helicopter.
The Systems 3 acquisition is CMI’s third major acquisition since Gallant Capital Partners acquired a majority stake in CMI in 2020. In May 2020, CMI acquired Aerostar Aerospace and Warmelin Precision Products, both manufacturers of precision machined components.
CMI was represented by Stradling Yocca Carlson & Rauth as M&A counsel and Perkins Coie as debt finance counsel. Monroe Capital provided the debt financing for the transaction.
About Systems 3
Founded in 1985 and headquartered in Phoenix, AZ, Systems 3 is a leading manufacturer of complex flight safety parts to well-known national helicopter assets. Systems 3 is a key supplier for major global defense OEMs and utilizes its unique manufacturing expertise to deliver components that ensure crew safety in rotary wing platforms.
About CMI Group
Founded in 1972 and headquartered in Phoenix, AZ, CMI is a leading manufacturer of critical components for engines, APUs, fuel and fluid systems, gears, hydraulics, and valves for the majority of commercial, military and business jet platforms serving the aerospace and defense industry. CMI is a key supplier for major global OEMs and utilizes its vertically integrated manufacturing expertise and broad capabilities set to deliver high quality products and services to its customers. For more information please visit: www.cassmac.com.
About Gallant Capital Partners
Gallant Capital Partners is a private equity firm that makes control investments in technology, industrial and business services companies. Gallant executes on an operationally focused investment strategy with a focus on partnering closely with companies that can benefit from its extensive industry relationships and operating expertise. The firm partners with owners, founders, family-owned companies and management teams to maximize value and long-term, sustainable growth for portfolio companies. Gallant Capital Partners was founded in 2018 and is headquartered in Los Angeles. For more information please visit: www.gallantcapital.com.
For More Information Contact:
Jamie Kim, Vice President