NORTH HOLLYWOOD, California, August 24, 2011 – Klune Industries, Inc. (“Klune”) announced today the acquisition of GCM North American Aerospace (“GCM” or the “Company”) from an affiliate of Churchill Equity Partners. GCM, headquartered in Kent, Washington, is a leading provider of precision-machined components, integrated kits and assemblies to the commercial aerospace and defense markets. The Company has well established positions on key growth platforms including the Boeing 737, 777, 787 and 747-8. GCM’s components and assemblies can be found on critical areas throughout the aircraft, including the wings, airframe, fuselage and control mechanisms as well as in the aircraft’s interior.
“Churchill is pleased with its investment and long-term partnership with the management team of GCM,” said Mitch Kern, a Partner at Churchill Equity Partners. “Management has done a tremendous job of building a leading supplier to the aerospace industry. We believe the combination with Klune and Vance Street will only strengthen the Company’s leading position in the market.”
Allen Ronk, CEO of Klune, commented, “The acquisition of GCM will further enhance Klune’s relationships with industry leading OEMs on high growth platforms, specifically in the commercial aerospace sector. We are excited to work with Ken McNew (GCM CEO) and his management team as we build Klune into an industry leading supplier to the commercial and defense markets.”
Klune’s majority shareholder, Vance Street Capital LLC, provided equity financing for the acquisition and FS Investment Corporation provided the debt financing. Richard Crowell, Vance Street Capital Founding Partner, stated, “Vance is pleased to support Allen Ronk and the Klune team in this strategic acquisition. GCM has achieved excellence under the leadership of Ken McNew, and the combination will provide benefits to both companies.”
Klune was represented by law firm Paul Hastings. GCM was represented by financial advisory firm Lazard and law firm Lindquist & Vennum.
About Klune Industries
Klune Industries, Inc. is a leading aerospace contractor, manufacturing complex parts, assemblies and components for commercial aircraft, military aircraft and missile systems. The Company specializes in manufacturing doors, nacelles, wings and other aerostructures for the commercial market; and missile systems components, fuel tanks, bomb racks, rotors, ground. For more information visit: www.klune.com.