CMI Acquires Systems 3 to become the leading A&D focused manufacturer of precision components and assemblies in the Southwest

CMI announced the acquisition of Systems 3, a leading manufacturer and supplier of flight critical components to the aerospace and defense industries. With the acquisition, CMI becomes the preeminent complex precision manufacturing partner for both commercial and defense focused OEMs.

"Systems 3 is a natural strategic fit with CMI. The combination significantly enhances CMI's scale, technical capabilities and customer relationships, and Systems 3's customers will benefit from CMI's industry-leading vertically integrated and automated manufacturing capabilities," said Mark McFeely, CEO of CMI. "We welcome the Systems 3 team to the CMI family and are very excited about CMI's long-term prospects. This acquisition is a big step towards our goal of becoming the leading supplier to aerospace and defense OEMs worldwide."

Systems 3 manufactures hundreds of complex and unique parts that are used in mission-critical applications and require the highest level of quality and reliability. Parts and components include flight safety components that are essential to the operations of leading rotary-wing platforms such as the AH-64 Apache helicopter.

The Systems 3 acquisition is CMI's third major acquisition since Gallant Capital Partners acquired a majority stake in CMI in 2020. In May 2020, CMI acquired Aerostar Aerospace and Warmelin Precision Products, both manufacturers of precision machined components.

CMI was represented by Stradling Yocca Carlson & Rauth as M&A counsel and Perkins Coie as debt finance counsel. Monroe Capital provided the debt financing for the transaction.