Setna iO’s aftermarket acquisitions and global expansions are on track to quadruple the company’s MRO earnings by next year, according to CEO David Chaimovitz.
Over the past 12 months, the MRO portion of Setna iO’s business has contributed around 5% of its earnings, but Chaimovitz tells Aviation Week Network he expects these earnings to reach 20% by this time next year.
The fast pace is thanks to the company’s “aggressive” MRO expansion strategy, which has included acquisitions of two Florida-based component MRO providers so far this year.
Setna iO acquired a majority stake in Miami-based component repair specialist Zulu Global in February. Chaimovitz says business has been good since the acquisition, and Setna iO now has a letter of intent to move the subsidiary into a modern 100,000-ft.² facility in South Florida that should be operational sometime next year.
On Aug. 28, Setna iO acquired a majority stake in Landing Gear Technologies (LGT), a landing gear systems repair and overhaul provider based in Hialeah, Florida. “Setna is looking to invest in what we perceive to be best-in-class companies throughout the industry, where we can add value to the supply chain by putting our work through the shops as well as by assisting on the commercial side for these shops with our massive global network of customers,” says Chaimovitz.
He highlights LGT’s in-house landing gear plating capabilities for widebody aircraft as a strength, noting that this capability is tough to get approved and set up, so “It’s a large value-add portion of the business.” Setna iO also expects to expand LGT’s staff to support new product lines and services that it says will be rolled out over the coming months.
Setna iO’s repair station subsidiary, Setnix, announced a strategic partnership Sept. 2 with Altitude Aero, an aircraft-on-ground and logistics specialist based in Tampa, Florida. While Setna is not disclosing specifics about the partnership, it notes that the collaboration will provide comprehensive teardown and repair services for auxiliary power units and line replaceable units.
Across the Atlantic, Setna iO is also investing in new facilities and product lines. It recently closed on a new 125,000-ft.² facility that will house its Setnix UK operation and serve as a major stockholding site. The Setnix UK business has initially focused on wheels and brakes due to the supply chain issues the company has encountered in the region for these components.
Chaimovitz says Setnix UK has certified around 400 wheels and brakes since receiving certification earlier this year. By the end of this year, Setnix UK expects to announce what Chaimovitz says will be a significant investment in “a totally different MRO sector.” Setna iO is also working on facility expansions at its Setnix facility in Tempe, Arizona, and at its headquarters in the Chicago area.
Chaimovitz says Setnix’s first building in Tempe is running at nearly full capacity and its second building is running at approximately 10% capacity, so he expects significant growth at the site over the next few years. The facility recently completed its first engine teardown and Setnix has added capability there for auxiliary power unit starters and fuel pumps.
In Chicago, the company is adding more Part 145 capacity under the brand Setna PartsLab. Chaimovitz says Setna iO has passed its audit for the expansion and it is waiting for FAA release before applying for licensing with other regulators.
Meanwhile, Chaimovitz tells Aviation Week Network that the company has “another acquisition in the pipeline that is looking really positive right now,” and that it may also look at other smaller acquisitions next year.
All of Setna iO’s recent acquisitions and facility expansions will bring it to a total of six MRO facilities and around 450,000 ft.² dedicated to MRO, according to Chaimovitz.
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