Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, June 7, 2019

Article Excerpt

WESCO AIRCRAFT HOLDINGS INC., $10.60, symbol WAIR on New York, is a distributor and provider of supply chain management services to the aerospace industry. It offers traditional distribution as well as supplier-relationship management and just-in-time delivery. The company supplies 565,000 items, including hardware, chemicals, and electronic components, to over 7,000 customers. Wesco was acquired by private equity firm The Carlyle Group LP in 2006. In 2011, Carlyle took the company public at $15 a share. Carlyle still owns 25% of Wesco. In 2014, the company paid $550 million for Hass Group, a leading provider of chemical supply chain management to the aerospace industry and others. The acquisition, which was financed primarily with debt, has yet to generate the profitability Wesco expected. That hurt its share price in the following three years. Wesco, which continues to try to improve the profitability of its operations and to lower its debt, has now reportedly hired investment bankers to explore a possible sale of the company. In the…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.