Airforce Turbine Service Forms Strategic Partnership with McNally Capital to Accelerate Global Aviation Growth
Airforce Turbine Service, Ltd. (“ATS” or the “Company”), a leading independent global aviation services provider specializing in maintenance, repair, and overhaul (MRO) of the Pratt & Whitney PT6A turboprop engine family, today announced a strategic partnership with McNally Capital (“McNally”), a growth-focused private equity firm concentrating on middle-market aerospace & defense and industrial technology & services investments.
The partnership represents a significant milestone in ATS’s ongoing growth trajectory, enabling the Company to expand its capabilities, strengthen its global footprint, and deliver enhanced services to operators navigating increasingly complex operational and supply chain dynamics.
Strategic Rationale and Growth Potential
“ATS is at an important inflection point in its growth, with significant opportunities ahead to expand and scale the business,” said Chris Carson, Managing Partner and Owner of ATS. “As we evaluated potential partners, McNally Capital clearly stood out for their deep understanding of our business and proven track record in scaling aerospace services platforms. They are the right partner to help take ATS to the next level while remaining true to our culture and commitment to customers.”
The partnership is designed to accelerate ATS’s strategic growth initiatives, including global expansion, infrastructure investment, talent development, and technology adoption, all while maintaining the operational excellence and reliability that have defined the Company since its founding in 1989.
Augustine “Augie” Lara, Chief Operating Officer of ATS, highlighted the operational advantages of the partnership:
“McNally brings deep aerospace expertise, a long-term mindset, and a strong appreciation for the mission-critical nature of what we do. With their support, we are well-positioned to expand our capabilities, invest in our people and infrastructure, and better serve operators navigating aging fleets, rising utilization, and ongoing supply chain challenges.”
Expansion of Global Footprint
As part of the transaction, Turbine Engine Maintenance Repair and Overhaul (“TEMRO”) will join ATS as a wholly owned operating subsidiary. Based in Johannesburg, South Africa, TEMRO provides certified engine maintenance and aftermarket support, significantly enhancing ATS’s international service capabilities.
With TEMRO integrated, ATS now operates a truly global maintenance footprint, anchored in Mathis, Texas, with additional locations in Malaysia and South Africa, and a remote sales and technical support office in Guatemala. This expansion ensures that operators worldwide have access to rapid, localized support for PT6A-powered aircraft, reducing downtime and increasing operational reliability.
The combined ATS platform offers:
- World-class MRO services, including on-wing AOG (aircraft-on-ground) support.
- Comprehensive aftermarket solutions, such as engine and parts sales, exchange programs, and rental options.
- Global reach, delivering maintenance and support across multiple continents with a scalable infrastructure capable of meeting evolving market demands.
Leadership Alignment and Strategic Guidance
The partnership also brings strengthened leadership oversight. Rob Wilson, former President of Business Aviation & General Aviation at Honeywell Aerospace and a longtime McNally Capital industry partner, has joined ATS as Executive Chairman. Wilson brings extensive operational, strategic, and leadership experience in global aviation services, particularly in turboprop engine platforms.
“ATS has built a differentiated business grounded in operational excellence, customer trust, and a strong culture,” said Ravi P. Shah, Partner at McNally Capital. “With the growing utilization of PT6A fleets, aging aircraft, and ongoing supply chain pressures, ATS is exceptionally well-positioned to scale its operations, invest in its workforce, and expand service offerings globally. We are excited to partner with the ATS team to support their next phase of growth while preserving the mission-critical focus that has made the Company a trusted partner to operators worldwide.”
Market Context and Strategic Opportunity
ATS operates in a critical segment of the global aviation services market, serving operators of the Pratt & Whitney PT6A turboprop engine, one of the most widely deployed and reliable engines in commercial, general aviation, and specialized mission applications.
Several market dynamics are driving demand for ATS’s services:
- Aging Fleet Maintenance: As PT6A-powered aircraft age, demand for overhaul, refurbishment, and lifecycle management services is increasing.
- Rising Aircraft Utilization: Operators are flying more hours, creating greater wear-and-tear on engines and increasing reliance on rapid and reliable MRO providers.
- Supply Chain Pressures: Component availability and logistics challenges elevate the value of trusted MRO partners capable of ensuring minimal downtime.
- Global Fleet Expansion: Growth in regional, cargo, and specialized aviation markets worldwide expands the addressable market for certified maintenance providers.
The partnership with McNally Capital equips ATS to capitalize on these trends, enabling the Company to expand infrastructure, enhance digital maintenance capabilities, and develop new aftermarket programs tailored to evolving operator needs.
Investment and Growth Strategy
This strategic partnership marks McNally Capital’s first platform investment from McNally Capital Fund III, LP, reinforcing the firm’s commitment to aerospace & defense aftermarket services. McNally Capital specializes in partnering with management-led companies at mission-critical inflection points, providing both capital and operational expertise to accelerate growth and scale businesses globally.
Key growth initiatives under the partnership include:
- Infrastructure Investment: Expanding capacity at ATS’s existing facilities in Texas, Malaysia, and South Africa, and exploring new locations in high-growth regions.
- Talent Development: Recruiting and training specialized technical personnel to maintain ATS’s high standards for operational reliability and customer service.
- Service Innovation: Enhancing predictive maintenance, exchange programs, and aftermarket offerings to meet evolving operator needs.
- Global Customer Support: Strengthening AOG response capabilities and remote technical support to ensure uninterrupted operations worldwide.
- Strategic Partnerships: Collaborating with OEMs, operators, and aviation networks to expand service capabilities and accelerate growth.
Through these initiatives, ATS aims to solidify its leadership in the PT6A MRO market while creating long-term value for operators, employees, and stakeholders.
Leadership Perspectives
Chris Carson, Managing Partner and Owner of ATS, emphasized the alignment between ATS’s vision and McNally Capital’s investment philosophy:
“We are at an inflection point in our growth, with significant opportunities ahead to expand and scale the business. McNally Capital’s deep industry expertise and commitment to long-term value creation make them the ideal partner to help us navigate this next chapter while preserving our culture and dedication to customers.”
Augie Lara, COO of ATS, highlighted the operational impact of the partnership:
“This collaboration provides us with the resources and guidance to invest in people, technology, and infrastructure, ensuring we continue to provide reliable, mission-critical services to operators around the world.”
Rob Wilson, Executive Chairman, added:
“With McNally Capital’s support, ATS is well-positioned to grow globally, expand service offerings, and strengthen its infrastructure. The combined expertise of the ATS team and McNally Capital creates a powerful platform for sustained growth and operational excellence.”
Transaction Advisors
The acquisition was supported by a team of experienced advisors to ensure a smooth and strategic transaction:
- Alantra – Financial Advisor to ATS
- Moore & Van Allen PLLC – Legal Counsel to ATS
- Ropes & Gray LLP – Legal Counsel to McNally Capital
These advisors played a crucial role in structuring the transaction, performing due diligence, and facilitating strategic alignment between ATS and McNally Capital.
The strategic partnership between Airforce Turbine Service and McNally Capital represents a transformative milestone for both organizations. By combining ATS’s operational excellence, global service footprint, and expertise in PT6A MRO with McNally Capital’s strategic guidance and growth capital, the Company is well-positioned to accelerate global expansion, enhance service capabilities, and deliver long-term value to aviation operators worldwide.
As ATS embarks on this next phase of growth, the partnership underscores the broader trend of strategic private equity investment in aerospace aftermarket services, highlighting the critical role of operational expertise, infrastructure investment, and long-term partnerships in enabling sustained growth in the global aviation sector.
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