AE Industrial Partners announced that it acquired Powder Alloy Corporation, a producer of highly engineered metallic, ceramic, and thermal spray powders used in mission-critical surface enhancement and joining applications. Financial terms of the private transaction were not disclosed.
The acquisition establishes a new U.S.-based specialty materials platform for AE Industrial focused on highly engineered powders serving aerospace and industrial end markets.
Founded in 1973 and headquartered in Loveland, Ohio, Powder Alloy Corporation produces specialized powders used across OEM and aftermarket applications. Its products serve the aerospace and gas turbine sectors, along with biomedical, power and energy, and other industrial markets.
PAC’s materials are used in applications that require precision, qualification, and performance in demanding operating environments. The company’s products support critical components and systems where surface enhancement, joining, and advanced materials performance are essential.
The company’s in-house capabilities include inert gas atomization, composite cladding, mechanical blending, agglomeration and sintering, and plasma densification. These capabilities enable PAC to produce specification-controlled powders and proprietary blends for customers with complex materials requirements.
AE Industrial said PAC’s portfolio is difficult to replicate because many of its powders require exact specifications, years of testing, and qualification for demanding applications. The firm plans to use PAC as the foundation for a broader specialty materials platform.
The investment aligns with AE Industrial’s focus on companies that support aerospace, national security, industrial resilience, and economic security. The firm sees an opportunity to build a leading independent provider of proprietary powders and materials to address critical supply chain gaps in difficult-to-produce materials.
PAC is expected to benefit from favorable industry trends in jet engines and industrial gas turbines. The company’s growth prospects are supported by its proprietary formulations, customer relationships, and role within critical supply chains.
AE Industrial plans to support PAC through expanded production capacity, investment in next-generation formulations, strategic partnerships, and complementary acquisitions. The firm said these initiatives will help meet growing demand for PAC’s existing portfolio and support new product development.
Powder Alloy Corporation will continue building on more than 50 years of experience serving customers that require advanced alloys and high-performance powders. The company has become a trusted manufacturing partner across aerospace, energy, chemical, medical, and industrial applications.
AE Industrial Partners had approximately $9 billion in assets under management as of March 31, 2026. Since 2015, the firm has completed more than 155 investments across national security, aerospace, and industrial services.
KEY QUOTES:
“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. 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.”
Bryan McElwee, Partner at AE Industrial
“For more than 50 years, PAC has built its reputation on delivering specialized powders that meet the most demanding specifications throughout our end markets. 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.”
Steve Payne, President and Founder of Powder Alloy Corporation
“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. This acquisition launches our specialty materials platform, and we see meaningful growth opportunities through new product development, strategic products.”
Steve Payne, President and Founder of Powder Alloy Corporation
“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. This acquisition launches our specialty materials platform, and we see meaningful growth opportunities through new product development, strategic partnerships, and complementary acquisitions.”
Andrew McElhinney, Principal at AE Industrial
