AE Industrial Partners-backed engine machining and fabrication company GS Precision is exploring a sale through financial advisor Lazard, said two sources familiar with the matter.

The Brattleboro, Vermont-based company is expected to generate around USD 40m in EBITDA this year, the two sources said. Books have not yet been distributed to prospective buyers, these sources added.

GS Precision is expected to generate interest from strategics and private equity firms, the two sources said. They said comps to GS Precision are aerospace components maker Paradigm Precision and precision aero-engine component manufacturing and repair services company MB Aerospace.

In February 2023, a deal was completed in which Whitcraft Group and Paradigm Precision were acquired by funds managed by Clayton, Dubilier & Rice and Greenbriar Equity Group and combined to form aircraft engine component maker Pursuit Aerospace. Terms were not disclosed. Mergermarket reported in December 2022 that Paradigm Precision sold for at least a mid-teens EBITDA multiple. Last June, Barnes [NYSE:B] announced its agreement to acquire MB Aerospace from Blackstone [NYSE:BX] for an enterprise value of USD 740m. The deal was completed in August.

GS Precision makes precision components and specialty hardware used in aerospace engines and defense systems.

AE Industrial Partners acquired GS Precision in 2020 for an undisclosed amount. In 2022, GS Precision acquired aerospace and defense components maker SMC Aerospace and engineered gears company F.T. Gearing for undisclosed amounts.

AE Industrial Partners and Lazard declined to comment. GS Precision did not return a request for comment.