Aviation Technical Services (ATS) is a leading provider of maintenance, overhaul, and repair ("MRO") services to the aerospace and aviation industry. ATS's best in class services include airframe maintenance, component repair, and outsourced engineering for a variety of blue-chip airline and aerospace customers. The key driver of MRO demand is the government-mandated repair schedule for aircraft (regulated by the FAA), which is based on flight hours, flight cycles, or time. Even as aircraft technology has evolved, the basic requirement that planes and parts be periodically repaired and replaced has remained, driving a stable base of work for MRO service providers.
Together with management, JLL plans to fundamentally transform the business under its ownership, evolving ATS's offerings within engineering and components services, while continuing to provide excellent service to its blue chip customer base in its core MRO segment.
Partnership with Management: Highly tenured management team with a demonstrated track record of financial outperformance. Management has provided ~30% of the acquisition capital solidifying the alignment with interest between ATS and JLL.
Build-up Opportunity: JLL's investment will provide the company with expertise to grow and evolve the business. In particular, JLL and company management are focused on, both organically and through acquisitions, introducing greater engineering capabilities.