AE Industrial Establishes Specialty Materials Platform with Investment in Powder Alloy Corporation

Partnership with Powder Alloy Corporation establishes U.S.-based platform for highly engineered powders serving the aerospace and industrial end markets

BOCA RATON, Fla.--(BUSINESS WIRE)--AE Industrial Partners, LP (“AE Industrial” or the “Firm”), a private investment firm focused on technologies and services considered critical to aerospace and national and economic security, today announced that it has acquired Powder Alloy Corporation (“PAC” or “the Company”), a leading producer of highly engineered metallic, ceramic, and thermal spray powders used across mission-critical surface enhancement and joining applications. Financial terms of the private transaction were not disclosed.

Founded in 1973 and headquartered in Loveland, Ohio, PAC produces a diverse range of specialized powders used across both OEM and aftermarket applications in the aerospace and gas turbine sectors, as well as biomedical, power & energy, and other industrial segments. The Company’s in-house capabilities include inert gas atomization, composite cladding, mechanical blending, agglomeration and sintering, and plasma densification.

“PAC’s end markets run on materials that are extraordinarily difficult to produce — powders engineered to exacting specifications, qualified through years of rigorous testing, and proven in the most demanding applications on earth and in the air. PAC has built exactly that capability over more than 50 years, and the breadth of their proprietary portfolio is something that simply cannot be replicated,” said Bryan McElwee, Partner at AE Industrial. “This investment is the foundation of our newest specialty materials platform. Our vision is to build the preeminent independent provider of proprietary powders and materials — a platform purpose-built to address the critical supply chain gaps that exist today for unique, difficult-to-produce materials across PAC’s end markets.”

“For more than 50 years, PAC has built its reputation on delivering specialized powders that meet the most demanding specifications throughout our end markets” said Steve Payne, President and founder of PAC. “AE Industrial understands these markets and brings the resources and relationships to help us scale production capacity, invest in next-generation formulations, and serve the growing demand for PAC’s existing portfolio of specification-controlled products.”

PAC is well positioned to benefit from favorable industry dynamics and product trends in the jet engine and industrial gas turbine markets, supported by its proprietary blends, deep customer relationships, and a critical role within their respective supply chains.

“As a differentiated strategic manufacturing partner, the investment in PAC reflects our firm’s philosophy of supporting companies that are addressing the critical tollgates for national and economic security,” added Andrew McElhinney, Principal at AE Industrial. “This acquisition launches our specialty materials platform, and we see meaningful growth opportunities through new product development, strategic partnerships, and complementary acquisitions.”

About AE Industrial Partners:

AE Industrial Partners is a private investment firm with approximately $9.0 billion of assets under management as of March 31, 2026, focused on investing in technologies and services considered critical to national & economic security. Since 2015, AE Industrial has completed more than 155 investments in market-leading companies that benefit from its deep industry knowledge, operating experience and network of relationships across the sectors where the Firm invests (national security, aerospace and industrial services). With a commitment to driving value creation in partnership with the management teams of its portfolio companies, AE Industrial invests across private equity, venture capital and aerospace leasing. AE Industrial is headquartered in Boca Raton, FL and has an office in Washington, D.C. Learn more at www.aeroequity.com.

About Powder Alloy Corporation:

Powder Alloy Corporation is a leading manufacturer of high-performance metal powders, serving industries that demand precision, quality, and innovation in their materials. With a commitment to continuous improvement and cutting-edge technology, the company has become a trusted partner for customers seeking advanced alloys for a wide range of applications in the aerospace, energy, chemical, and medical industries. Learn more at www.powderalloy.com.