General Electric lands on LI with Aircraft Parts Corp. takeover

Long Island Business News, Dec 31, 2004 by Claude Solnik

Long Island is back on General Electric's radar.

Just four months after selling its aviation operations here, the company said it's snapping up Holtsville-based Aircraft Parts Corp., a firm that's nearly a half-decade old and counts Bombardier, Cessna, EDO, Honeywell, LearJet and Raytheon among its customers.

GE said that aircraft service company Garrett Aviation which it sold to the Carlysle Group in August, didn't fit into its core business. But APC, which makes generators used on light aircraft (business and commuter jets, and helicopters), presents a major opportunity for growth, both locally and nationwide.

This new acquisition is a good fit, said Rich Kennedy, A GE spokesman. It's right down our line, enhancing the technology fed off a jet engine. They're involved in electrical generation, and if you look at future requirements for aircraft, they're going to need additional electricity.

The companies didn't reveal the terms of the stock deal, which is expected to close within several months.

The acquisition creates a multitude of benefits for both APC customers and its employees, said Eric Sandler, chief operating officer at APC, which employs 110 people on Long Island. This merger will give APC access to new technologies and additional resources for research and development. It will also allow us to expand our business to become a full-source electric power systems provider.

The takeover was announced eight moths after the death of Sy Sherman, APC's founder, chairman and owner. He died April 19, at age 81, and Elsie Sherman, his wife and APC's CEO and principle owner, decided to retire.

According to a letter from APC that went out to customers, The decision to sell the company was due mainly to Elsie Sherman's decision to retire, and with no real succession plan in place. After months of consideration and offers from several interested parties, the board of directors at Aircraft Parts Corp. unanimously made the decision to be acquired.

Despite Elsie Sherman's retirement, some family members will remain with APC, including Karen Paisley, as human resources manager; Tom Paisley, as manufacturing manager, and Bill Paden, plant manager, APC said.

There were six major companies interested in us, said Sandler. We thought the best fit was with GE.

Fairfield, Conn.-based GE has already begun making a play to become a provider of generators in the sky, as well as on the ground.

Two years ago, the company acquired Jacksonville, Fla.-based Unison, which develops generators, engine sensors and starters, and other jet-engine accessories.