Electro Methods Inc., a South Windsor-based manufacturer of aerospace components, has been acquired by a new company backed by asset-management giant Blackstone.
The deal was announced Monday by the new company, Stronvar Aerospace. With its acquisition of EMI, Stronvar is taking over a business founded in 1965 with a six-facility campus in South Windsor and about 230 employees.
In a news release, Stronvar officials said that through the acquisition of EMI they plan to “expand its capabilities, increase capacity and further develop its highly skilled workforce in partnership with EMI’s existing management team.”
“We are delighted to complete the acquisition of EMI as a cornerstone of the Stronvar platform and to partner with Blackstone again,” Stronvar CEO Craig Gallagher said in a statement included in the news release. “EMI is trusted by leading (original equipment manufacturer) customers to manufacture some of the most complex assemblies in the industry, and our goal here is to build on the high-performance culture and exceptional engineering quality signature with which they do that.”
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The price of the transaction was not disclosed.
As part of the acquisition, longtime EMI executive Bill Soucy will become the company’s president and general manager, while the company’s president, Randy Fries, will become its vice chairman.
“I am delighted to be stepping up the role of president and general manager at EMI after working alongside Randy for a large part of his 40-plus year executive tenure,” Soucy said in a statement. “I am excited to be leading the team here at EMI and ensuring that we execute the growth in front of us. I also welcome the experience and resources that Stronvar and Blackstone will bring to help make this business even better.”
Fries provided a similar outlook.
“Stronvar’s cultural fit with EMI and its plans to invest behind our growing order book and expand the customer offering is exactly what we envisioned for the company as we considered how best to support the next stage of growth,” Fries said in a statement. “The team in South Windsor and our customers can look forward to a bright future under Stronvar’s stewardship.”
EMI focuses on the “fabrication of high-value assemblies using exotic aerospace alloys” for manufacturers of aerospace engines, with a “significant array of welding, machining and special process technologies on its purpose-built campus,” according to the news release.
A message left for Stronvar inquiring how the acquisition would affect EMI’s staffing head count was not immediately returned.
South Windsor Mayor Audrey Delnicki said that she learned about the acquisition through the announcement on Monday and has not spoken yet with anyone at EMI or Stronvar.
“All of the businesses in South Windsor are important and make up a strong interwoven community that is South Windsor,” Delnicki said in an email. “I look forward to working with them as a new business partner for the community.”
Stronvar officials said in the news release that their company is headquartered in Connecticut and is supported by “an investment from Blackstone’s private equity strategy for individual investors.” Blackstone, which has assets of more than $1.1 trillion, describes itself as “the world’s largest alternative asset manager.”
“We see tremendous growth opportunities ahead in the aero engine supply chain for scaled and highly capable companies that can provide innovative engineering, operational excellence and world class customer service,” Nick Kuhar of Blackstone said in a statement. “We believe EMI is exceptionally well positioned to capitalize on this, and we are excited to support Stronvar and EMI management to propel the company forward.”
Blackstone and Gallagher have experience working together. He previously served as the CEO of aerospace-components manufacturer MB Aerospace, which was acquired by Blackstone in 2015.
This is a developing story and will be updated as new information becomes available.