H.I.G. Capital acquires International Aerospace Coatings

H.I.G. Capital has acquired International Aerospace Coatings (IAC) in an effort to expand its presence in the aviation services and aerospace maintenance sector. This acquisition comes as the aviation industry experiences growth in airline fleets and a heightened demand for aircraft refurbishment. The financial terms of the deal were not disclosed.

IAC, headquartered in Irvine, California, and Shannon, Ireland, specializes in aircraft painting and related aviation services. The company serves various clients, including airlines, aircraft manufacturers, leasing companies, and maintenance providers. It operates 25 hangars across 11 locations in the United States and Europe, supported by long-term contracts with major aviation customers. The acquisition will enable IAC to leverage H.I.G.'s resources to grow its geographical footprint, increase hangar capacity, and consider potential add-on acquisitions, according to IAC CEO Maurice O’Connell.

The strategic acquisition of IAC positions H.I.G. to benefit from ongoing recovery and future growth in commercial aviation. Airlines are investing in fleet refurbishment, maintenance cycles, and rebranding efforts, which IAC is well positioned to support. IAC's reputation for quality and consistency in operational delivery is expected to help it capture a larger market share as airlines and lessors continue to prioritize these elements in service providers.

The acquisition highlights a growing interest in aviation infrastructure and aftermarket services among private equity firms. These sectors provide more stable revenue streams due to their predictable maintenance and servicing cycles, compared to the more volatile aircraft manufacturing segment. As global fleets expand, airlines increasingly outsource specialized services such as aircraft painting and exterior maintenance to focus on branding, corrosion prevention, and asset preservation, further boosting demand for IAC's offerings.

The transaction, assisted by RBC Capital Markets and Ropes & Gray for H.I.G. and Jefferies and Latham & Watkins for IAC, reflects ongoing consolidation within the aviation services industry. Companies are seeking greater scale, expanded geographic presence, and enhanced technical capabilities to better serve global airline customers. As the deal progresses, stakeholders will be watching for any regulatory reviews or additional strategic moves by H.I.G. to further integrate and expand IAC's operations.