McNally Capital Acquires Airforce Turbine Service to Accelerate Global Aviation MRO Growth
McNally Capital, a growth-focused private equity firm specializing in middle-market aerospace & defense and industrial technology & services, today announced the acquisition of Airforce Turbine Service, Ltd. (“ATS” or the “Company”), a leading independent global aviation services provider. ATS is renowned for its expertise in maintenance, repair, and overhaul (MRO) of the PT6A turboprop engine family, one of the most widely used and reliable engines in general aviation, commercial, and specialized operations worldwide.
The acquisition underscores McNally Capital’s ongoing commitment to supporting management-led companies in the aerospace sector that are positioned at pivotal inflection points, providing both capital and strategic guidance to scale operations, expand capabilities, and enhance global reach.
Strategic Rationale and Growth Potential
“ATS is at a compelling inflection point, with clear opportunities to scale its platform, expand capabilities, and continue serving operators at the highest level,” said Ravi P. Shah, Partner at McNally Capital. “The team has built a differentiated business grounded in operational excellence, customer trust, and a strong culture. We are excited to partner with ATS to support its next phase of growth while preserving the values and mission-critical focus that define the Company.”
ATS has consistently distinguished itself in the global aviation MRO market by combining technical expertise, rapid turnaround times, and exceptional customer support. The Company’s service offerings include on-wing aircraft-on-ground (“AOG”) field support, comprehensive engine maintenance programs, parts sales, exchange programs, and rental solutions. These services cater to a diverse operator base, including commercial carriers, private operators, and governmental agencies.
With this acquisition, ATS is poised to expand its operational footprint and strengthen its position as a premier provider of PT6A MRO services on a global scale.
Global Expansion and Operational Footprint
A key component of the transaction is the integration of Turbine Engine Maintenance Repair and Overhaul (“TEMRO”), which will join ATS as a wholly owned operating subsidiary. TEMRO, based in Johannesburg, South Africa, brings certified engine maintenance and aftermarket capabilities that complement ATS’s existing operations.
Founded in 1989 and headquartered in Mathis, Texas, ATS has developed a global MRO network, with additional operational locations in Malaysia and South Africa, as well as a remote sales and technical support office in Guatemala. Together with TEMRO, the combined organization now delivers world-class maintenance services across multiple continents, reinforcing ATS’s reputation as a trusted partner to operators of PT6A-powered aircraft worldwide.
This geographically diverse network enables ATS to provide rapid, localized support, reducing aircraft downtime and offering scalable solutions for operators in North America, South America, Africa, and Asia-Pacific. It also positions the Company to capture growth opportunities driven by increasing utilization of PT6A aircraft, aging fleet replacement cycles, and evolving customer expectations in aviation services.
Leadership Alignment and Strategic Partnership
McNally Capital completed the acquisition alongside Rob Wilson, a seasoned aerospace executive and former President of Business Aviation and General Aviation at Honeywell, who will assume the role of Executive Chairman of ATS. Wilson brings extensive industry experience in business aviation, MRO operations, and organizational scaling, providing a strong leadership complement to ATS’s management team.
“ATS has earned the trust of operators through disciplined execution, rapid turnaround times, and consistent reliability in supporting the PT6A fleet,” said Wilson. “With increasing utilization, aging fleets, and supply chain pressures across the industry, ATS is exceptionally well-positioned to scale its infrastructure, invest in its people, and broaden its service offering. I am excited to work with the team and McNally Capital to guide the business through its next phase of growth.”
Chris Carson, Managing Partner and Owner of ATS, emphasized the strategic rationale behind selecting McNally Capital as a partner. “ATS is at an important inflection point in its growth, with significant opportunities ahead to expand and scale the business,” said Carson. “As we evaluated potential partners, McNally Capital clearly stood out for their deep understanding of our business and proven experience 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.”
This alignment between private equity, executive leadership, and the company’s existing management ensures that strategic growth initiatives can be executed efficiently while preserving operational excellence and customer focus.
Market Position and Industry Context
ATS specializes in servicing the Pratt & Whitney PT6A turboprop engine family, a highly reliable and widely deployed engine used in regional airlines, cargo operators, business aviation, and specialized mission aircraft. The PT6A fleet continues to expand globally, driven by demand for fuel-efficient, versatile, and cost-effective aircraft solutions.
The acquisition positions ATS to capture a growing aftermarket services opportunity fueled by several factors:
- Aging fleets requiring more frequent maintenance, overhaul, and engine replacement programs.
- Supply chain pressures affecting spare parts availability and service timelines, emphasizing the value of dependable MRO providers.
- Global growth in turboprop operations, including regional passenger services, freight transport, and mission-critical aviation.
- Technological advancements in engine monitoring, predictive maintenance, and component refurbishment, which are increasing operator reliance on specialized MRO providers.
By leveraging McNally Capital’s growth-oriented approach, ATS is well-positioned to invest in infrastructure, expand service capabilities, and develop new programs that address emerging customer needs, including AOG rapid response, exchange programs, and international support networks.
Strengthening McNally Capital’s Aerospace Portfolio
The ATS acquisition marks the first investment from McNally Capital Fund III, LP and reflects the firm’s aftermarket aerospace thesis, which targets management-led companies at mission-critical inflection points. McNally Capital focuses on partnering with companies that demonstrate operational excellence, scalable platforms, and significant growth potential in the aerospace & defense sector.
This acquisition complements McNally Capital’s existing aerospace investments and reinforces its strategic focus on the global MRO market, a segment characterized by high recurring revenue, long-term customer relationships, and steady growth driven by fleet utilization and regulatory requirements.
Transaction Advisors
The acquisition was supported by a team of financial and legal advisors to ensure a seamless transaction:
- Alantra served as financial advisor to ATS.
- Moore & Van Allen PLLC acted as legal counsel to ATS.
- Ropes & Gray LLP served as legal counsel to McNally Capital.
The advisors played a critical role in structuring the deal, performing due diligence, and supporting negotiations to ensure alignment with strategic objectives and long-term growth plans.
With the acquisition now complete, ATS is entering a new phase of global expansion and capability enhancement. Key strategic priorities include:
- Infrastructure Scaling: Expanding capacity at existing facilities in Texas, Malaysia, and South Africa, while evaluating additional service locations in high-growth regions.
- Talent Development: Investing in workforce training, certification programs, and technical expertise to support specialized MRO services and high-touch customer care.
- Service Innovation: Developing new aftermarket programs, predictive maintenance solutions, and parts exchange initiatives to improve operator uptime and reliability.
- Global Customer Support: Strengthening international AOG response capabilities and remote technical support, particularly in emerging markets.
- Strategic Partnerships: Collaborating with OEMs, operators, and aviation service networks to enhance service offerings and capture additional market share.
By executing these initiatives, ATS aims to solidify its position as a global leader in PT6A MRO services and capture sustainable, long-term growth in an evolving aerospace landscape.
The acquisition of Airforce Turbine Service by McNally Capital represents a strategically significant milestone in both firms’ growth trajectories. ATS gains access to growth capital, strategic guidance, and leadership expertise, while McNally Capital strengthens its presence in the aerospace aftermarket services sector.
Together with TEMRO, the expanded ATS platform is now better equipped to serve a growing global fleet, enhance operational capabilities, and deliver exceptional service reliability. The partnership reflects a shared commitment to operational excellence, customer trust, and sustainable growth, ensuring that ATS remains a trusted partner for PT6A operators worldwide.
This transaction not only underscores the continuing investment opportunity in aerospace MRO services but also highlights the role of strategic private equity partnerships in accelerating growth, scaling infrastructure, and advancing technological capabilities in a complex and highly regulated global industry.
Source link: https://www.businesswire.com