Sumitomo Completes Acquisition of Werner Aero MRO Firm Amidst Surging Demand

Werner Aero

Sumitomo Corporation, a Japanese trading house, has solidified its presence in the commercial aerospace aftermarket by fully acquiring Werner Aero, a US-based maintenance, repair, and overhaul (MRO) service provider. This strategic move aims to capitalize on the escalating demand for used aircraft parts.

Strategic Expansion in the Booming Aerospace Aftermarket

Through its US subsidiary, Sumitomo finalized the acquisition of the remaining 49% stake in Werner Aero, complementing the 51% share acquired in 2022. The company cited "favorable market conditions" and Werner's robust position within the aftermarket sector, particularly for narrow-body jets, as key drivers for this increased investment.

The MRO sector has witnessed substantial growth over the past two years, a trend expected to persist as original equipment manufacturers (OEMs) forecast continued demand. Airlines are extending the operational lifespan of their fleets due to delivery disruptions of new aircraft from airframers. This has led to a slowdown in aircraft retirements, subsequently boosting the need for spare components from both new production and refurbished sources. Engine manufacturers, including Pratt & Whitney, Rolls Royce, International Aero Engines, and GE Aerospace, are expanding their MRO networks through new investments. Tier 1 suppliers also anticipate a growing share of demand for their materials coming from aftermarket consumption.

Werner Aero, operating a 2,500ft² warehouse in New Jersey, specializes in selling parts recycled from dismantled retired aircraft, while also providing leasing services, inventory management, and repair operations. The company handles legacy engine programs for the aforementioned engine manufacturers.

The acquisition coincides with Toshinori Kondo assuming the role of Werner Aero's chief executive on January 1st, succeeding company founder Mike Cazaz, who retired after 32 years. Kondo joined Werner as executive vice president in 2022 as part of Sumitomo's initial investment.