Avem Partners Acquires Aircraft Parts Supplier FMI Amid Bankruptcy Proceedings

Forest Machining(FMI)

FMI Acquisition Strengthens Avem’s Aerospace Portfolio

Private equity firm Avem Partners acquired Forest Machining Inc. (FMI) for $16 million after it filed for Chapter 11 protection. FMI, known for manufacturing aerospace metal components, faced years of financial strain before being sold as the lone bid in bankruptcy court.

Avem also acquired Dynamic Aerostructures, FMI’s parent company, previously held by Endeavour Capital, which bought FMI in 2021. This acquisition strengthens Avem’s foothold in the commercial aerospace and defense sectors, according to a company statement.

Bankruptcy Rooted in Manufacturing and Cost Challenges

FMI struggled with quality control issues, fixed-price contracts, and inflationary cost pressures that eroded profitability. After its acquisition by Endeavour, FMI identified manufacturing missteps requiring major corrections and investments.

Meanwhile, key customers paused purchase orders, further hurting revenue. In 2023, a major OEM halted an aircraft program, triggering severe net losses. These cascading issues led FMI and affiliates to file for bankruptcy protection in February 2025.

FMI operates a 226,000ft² facility in Valencia, California, supplying parts made of titanium, aluminum, and stainless steel. Its client list includes Boeing, Lockheed Martin, and Spirit Aerosystems, indicating its role in critical aerospace supply chains.

The Metalnomist Commentary

Avem’s acquisition of FMI signals continued confidence in long-term aerospace growth, despite short-term turbulence. With the right capital and operational discipline, turning around high-precision manufacturers like FMI could position private equity firms to capture upside in the next aerospace cycle.