09 Dec 2024
Peerless Aerospace: a great strategic fit
Peerless has attractive, Diploma-style characteristics: a clear, value-add customer proposition, excellent growth potential, and a strong management team.
Great strategic fit
The acquisition is firmly aligned with Diploma’s strategy: extending our range of specialty products; growing our geographical footprint; and increasing our exposure to the fast growth aerospace market.
Peerless is complementary to Diploma’s existing Clarendon business, extending the product offering from aircraft cabin to airframe fastening solutions. The acquisition strengthens and expands Diploma’s positions in the US and Europe. In the US, it extends Diploma’s footprint from the West Coast, where Clarendon has a strong presence, to the East Coast.
Peerless significantly enhances Diploma’s capabilities and market presence in the attractive aerospace sector. The aerospace fasteners market, valued at close to £6bn, is highly fragmented and critical to aircraft manufacturing. Commercial aircraft require up to 400,000 individual fasteners in the airframe while for larger wide-body aircraft this rises to as many as 1,000,000. There is a significant production backlog in civil aerospace of over ten years.
There are clear opportunities for Peerless and Clarendon to work together, leveraging their individual offerings, combined expertise and supplier and customer relationships.
“Peerless is an excellent acquisition for Diploma, aligned to our strategy of building high-quality, scalable businesses for sustainable organic growth.”
Why Diploma is a good home for Peerless
Peerless has a strong culture, a history as a close family-run business and a great reputation. The owners and managers of Peerless wanted to find the right home for their business – one that would preserve its legacy. Diploma’s track record as an acquirer was key to the decision, particularly for Bill and Don, who have led the business for decades, and continue to do so in their current roles, with full accountability for its operations and performance. At the same time they, and their employees, also benefit from being part of a large, international Group with the resources, networks and expertise that brings. The Peerless team was particularly excited about the opportunities to collaborate with Clarendon – seeing the complementary customer relationships and market exposure as strong growth drivers.
A strong start
Peerless has a market-leading reputation, built over decades. This, combined with its deep customer and supplier relationships and extensive inventory of high-quality specialty fasteners, positions it well for continued growth. Peerless has a long track record of strong revenue growth and high operating margins. In the first five months of ownership, the business exceeded Diploma’s expectations as it leveraged its strong position and agility as a supplier in the complex aerospace supply chain.
Read the full announcement:
Diploma welcomed Peerless to the Group in May 2024.
Peerless is a leading supplier of specialty fasteners to the aerospace and defence markets in the US and Europe.
Founded in 1952 and headquartered in Farmingdale, New York, Peerless has established itself as one of the largest independent value-add distributors of aerospace fasteners.
Led by longstanding CEO, Bill Way, and President, Don Russo, the business is renowned for its high-quality products, excellent customer service, and innovative solutions. Customers also benefit from product tracking and traceability, scheduled inventory management, bespoke and automated vendor-managed inventory solutions, and custom kitting.