In a significant move to enhance its presence in the Midwest and diversify its clientele, Precision Aerospace Holdings LLC, headquartered in Dallas, Texas, has acquired Clearwater Engineering, located in Derby, Kansas. This acquisition, which broadens Precision’s market penetration, is part of the company’s strategy to expand its capabilities in aerospace machining and defense components. Clearwater Engineering, established in 1987, has built a notable reputation in precision machining, computer numerical control (CNC) milling, and supply chain management services, catering to both commercial and government aerospace sectors. The 40-strong team at Clearwater will remain under the guidance of its existing leadership, promising a seamless integration of operations and expertise.
Strategic Expansion
The acquisition of Clearwater Engineering marks the third such purchase by Precision Aerospace in the past two years, bringing the company’s total acquisitions to five since its inception through the collaboration of CIC Partners and Juniper Capital Management, both private investment firms based in Dallas. This follows earlier acquisitions such as Owens Machine and Tool Co. in Lewisville, Texas, last year, and Decatur Machine Services in Decatur, Texas, two years ago. Each acquisition has been aimed at strengthening Precision Aerospace’s foothold in the industry, enhancing its capabilities, and diversifying its service portfolio.
Pete Stegmaier, CEO of Precision Aerospace, praised the expertise Clearwater brings, emphasizing the expanded opportunities to cater to the commercial aerospace, business jets, and defense sectors. This acquisition is poised to take advantage of Precision’s existing infrastructure and client base, leveraging Clearwater’s advanced capabilities in precision machining and supply chain solutions.
David Cool, the president and owner of Clearwater Engineering, echoed the sentiment, highlighting the growth opportunities for their employees and the community due to the merger of resources and expertise. The acquisition promises to uphold and exceed customer expectations in quality, delivery, and cost control, driven by a collective wealth of experience and manufacturing capabilities.
Operational Integration
Following the acquisition, Precision Aerospace now operates with approximately 140 employees across five AS9100- and ITAR-certified U.S. locations. These locations are dedicated to aerospace, defense, and space component machining and assembly projects. The integration of Clearwater’s operations is expected to enhance overall service efficiency, ensuring the combined entity remains at the forefront of the aerospace and defense manufacturing sector.
As part of the deal, Precision Aerospace will lease Clearwater’s state-of-the-art facilities in Derby’s West Industrial Park. These facilities, spanning 35,000 square feet, offer potential expansion up to 100,000 square feet, highlighting the long-term benefits of the merger. Modern equipment management and setup systems, including tools like CATIA, MASTERCAM, VERICUT, and TDM, will remain operational, ensuring that high standards are maintained.
This continued use of sophisticated tooling and management systems underscores Precision Aerospace’s commitment to maintaining and enhancing its production capabilities. This commitment extends to ensuring that clients receive the best possible service and products, benefiting from the combined strengths of the two organizations.
Legal and Financial Considerations
In a significant strategic move, Precision Aerospace Holdings LLC, based in Dallas, Texas, has acquired Clearwater Engineering of Derby, Kansas. This acquisition is a key part of Precision’s plan to bolster its presence in the Midwest while diversifying its customer base. By incorporating Clearwater’s capabilities, Precision aims to further strengthen its position in the highly competitive aerospace machining and defense components industry. Established in 1987, Clearwater Engineering has earned a solid reputation for its excellence in precision machining, CNC milling, and comprehensive supply chain management services. Their clientele spans both commercial and government aerospace sectors. The talented 40-person team at Clearwater will continue to operate under their current leadership, ensuring a smooth integration of operations and expertise. This strategic acquisition demonstrates Precision Aerospace Holdings’ commitment to growth and excellence, promising continued innovation and expanded service offerings in the aerospace industry.
