Pegasus: Launching Growth through Aerospace Acquisitions

Leggett & Platt first took to the skies in 2012 when we entered the aerospace business, and we’ve been gaining altitude ever since. With sales reaching $150 million this year, L&P Aerospace continues to aim high –achieving lofty goals for revenue growth and extending our capabilities.

In February, L&P Aerospace made another giant leap forward with the acquisition of Pegasus Manufacturing, a Connecticut-based producer of fabricated tube and duct assemblies.

Similar to David Hart Aerospace Pipes (DHAP), Pegasus takes tubing manufactured by Western Pneumatic, Valley Metals, and Specitubes, and utilizes on-site welding, brazing, pressure testing, and other technologies to fabricate sophisticated assemblies for customers like Rolls-Royce, General Electric, Boeing and Airbus, Newport News Shipbuilders, and the US Government.

“Pegasus really fits multiple strategic needs,” explained Shannon Ukena, Director of Corporate Development. “This business takes us a step deeper into the supply value chain, gives us a new geographic foothold in a major aerospace hub in the Northeast, and opens us up to some complementary markets for our products.”

Pegasus serves a different market than our other aerospace operations, and its products literally reach the whole universe – space, air, land, sea, and subsurface. They manufacture highly specialized assemblies for an incredible range of applications, including commercial and military airframes and engines, spacecraft, submarines and aircraft carriers, and power-generating turbines and fuel cells.

“Technological progress is one of the keys to advancement in the aerospace industry,” said Simon Prior, Aerospace Group President. “Originally, aerospace at L&P meant straight pipe and tubing, where we enjoy really good market share, but have somewhat limited growth opportunities. With Pegasus, we are finding new ways forward with complex ‘value-added’ assemblies that give us opportunities to not only engage on a deeper level with existing customers, but really broaden the pool of potentials.”

Chris DiPentima, Pegasus Branch Manager, said, “The opportunities are substantial in moving from a strong, but small, family-owned operation to a global company with access to more resources and a larger sales team. All of the benefits we expected pre-acquisition are generating new prospects and programs much faster than we even anticipated.”

Daily production meeting with branch manager Chris DiPentima.

Daily production meeting with Branch Manager Chris DiPentima.

With rapid growth come a few growing pains, but as Chris explained, “The challenge is in finding ways to intertwine L&P’s and Pegasus’ policies, so we aren’t just layering one over the other. But in terms of operations, it has been pretty seamless. Our team continues to focus on being faster, more flexible, and very accurate at what we do.”

“Even with Pegasus and DHAP, L&P is still a relatively small player in the formed tube and pipe and duct assemblies markets,” said Simon. “With the huge potential for growth here, we will definitely look for ways to continue to expand our aerospace platform in this direction.”