Pacific Growth Investors (PGI) announced the formation of Spectra Aerospace (Spectra) in partnership with its portfolio company, Lanic Engineering (Lanic, dba Lanic Aerospace), and Gardena Specialized Processing (GSP).

Rancho Cucamonga, Calif.-based Lanic and Gardena, Calif.-based GSP have become wholly-owned subsidiaries of Spectra. PGI supported Lanic's management in its due diligence, structuring and negotiation of the transaction with GSP, and provided additional capital to support the combined business's strategic growth initiatives. GSP's owner, Mike Palatas, also invested in Spectra and will continue as GSP's vice president of operations.

The business combination under Spectra unites Lanic's capabilities in the machining and assembly of complex aerostructures with GSP's metal finishing expertise. The resulting synergistic, one-stop solution for precision machined products benefits Lanic's customers through improved turnaround times and quality control. GSP gains resources and capital under the Spectra umbrella, enabling it to expand its services.

PGI became Lanic's financial sponsor in February 2016 through a minority equity investment, alongside management, to support the company's growth strategy. Since then, Lanic has expanded its operations by acquiring a new facility in Huntington Beach, Calif., diversifying its customer base and upgrading its manufacturing capabilities with new, state-of-the-art equipment.

"We are excited to continue our support of Lanic Aerospace's management team with the formation of Spectra, and we are excited to have Mike and GSP on board," commented Tom Webster, co-managing partner of PGI. "We look forward to working with the expanded management team as board members and investors as they pursue organic growth strategies for the benefit of their customers."

"In my 20+ years of operating aerospace manufacturers, PGI is the first private equity firm I've worked with that truly understands the nuances of aerospace manufacturing," said Bob Leaming, CEO of Spectra. "More importantly, they are tremendous partners and board members, providing insight and oversight while leaving management the freedom it needs to grow and operate the business."

"I'm incredibly excited to join Bob and his team to form Spectra and bring the capabilities of GSP into the fold," said Mike Palatas, vice president of operations and owner of GSP. "Both Lanic and GSP have strong reputations for providing high quality products and service to their customers. Together, we can further enhance the customer experience."