Graham’s Latest Exit is Cleared for Takeoff
July 13th, 2023
PHILADELPHIA
Sells Desser, Industrial Technology Aviation Services Provider
Graham Partners, a private investment firm targeting technology-driven advanced manufacturing companies, is pleased to announce the sale of portfolio company, Desser Aerospace (“Desser”). Founded in 1920, Desser is one of the world’s largest independent distributors of aircraft tires and tubes, a leading global distributor of brakes and batteries, and a component Maintenance, Repair and Overhaul (MRO) services provider. Desser’s global distribution and MRO operation locations in California, Tennessee, the United Kingdom, and Australia, serve what Graham believes to be a diverse and attractive aftermarket customer base across most major aviation industry segments, including commercial aviation, business and general aviation, and military aftermarket customers.
Graham Partners acquired Desser from the family-owners after identifying the company as an attractive opportunity through the firm’s Investment Theme Program. Desser’s extensive aftermarket solutions offering includes PMA (FAA Parts Manufacturer Approval) component design and development and DER (FAA Designated Engineering Representative) repairs, an alternative to utilizing original equipment manufacturer (OEM) components and repairs. Graham’s investment thesis was premised on this conversion which, based on Graham’s research, offered a lower cost solution with comparable quality and sustainable attributes.
During its hold period, Graham worked with the former family-owned business to complete three add-on acquisitions, which helped the company diversify geographically and expand into what Graham believes are faster-growing and higher-margin areas. Desser gained access to the European, Middle Eastern, and African markets, which Graham believes complemented its existing business in North America and Australia and enabled the business to serve customers in over 150 countries. The company has continued to emphasize PMA and DER repair development in an effort to drive growth in its proprietary solutions segment, both of which can offer higher-margin contributions. Graham also collaborated with the company to help undertake certain operations optimizations, win new business, and on a facility expansion.
Graham Partners believes that it leveraged the firm’s prior experience investing in aerospace businesses, as well as experts within the aerospace and aviation industries during its hold. Mike Stewart, Vice President at Graham Partners, said “Graham believed Desser was a strong core business with room for growth at acquisition and we were excited to see our thesis come to life during our hold. We collaborated with the company to help it expand internationally and into what we view as the high-growth / high-margin PMA products segment, completed multiple add-on acquisitions, and professionalized the business from a family-owned business to a global aviation solutions provider that we believe endured and recovered strongly from a global pandemic. We wish Desser continued success under new ownership.”
About Desser
Founded in 1920, Desser is a leading independent distributor of specialty aviation tires, tubes, brakes, and batteries and a provider of component Maintenance, Repair and Overhaul (MRO) services. Desser operates locations in California, Tennessee, the United Kingdom and Australia, serving what Graham believes to be a diverse and attractive customer base across all aviation industry segments, including commercial aviation, business and general aviation and military aftermarket customers.
FOR FURTHER INFORMATION CONTACT:
Mike Stewart (mstewart@grahampartners.net)
Christina Morin (cmorin@grahampartners.net)
Tel: (610) 408-0500
Legal Disclaimer This press release is for informational purposes and is not an offer to sell, or a solicitation of an offer to buy, securities in the United States or elsewhere. Graham Partners is not utilizing this release to provide investment or other advice, and no information disclosed therein is to be relied upon for the purpose of making investment decisions. Past performance does not guarantee future results and any transactions described are included as representative transactions and are not necessarily reflective of overall performance. It should not be assumed that any investment described herein was or will be profitable.