Killick Aerospace Group, a Texas company controlled by Killick Capital of St. John’s, closed the sale Wednesday of four aviation repair businesses that could gross the company about US$229 million (C$286 million).

Killick said on New Year’s Eve that Alexandria, Va.-based transport support company VSE Corp. would buy four companies help by Carrollton, Texas-based Killick Aerospace: Prime Turbines, CT Aerospace, Kansas Aviation and Air Parts & Supply. Killick Aerospace in recent years had undergone a range of bolt-on acquisitions, and greatly increased the revenues of the acquired businesses by cross selling to its existing clients.

The aerospace deal is the second huge deal for Killick Capital in the past year. Last May, the investment firm founded by Mark Dobbin (whose father Craig Dobbin founded the helicopter company CHC Group) exited its investment in financial services software company Verafin after that company landed a $60 million private equity investment.

Dobbin said in an interview this morning that the latest deal includes the transfer of capital to the shareholders of the aerospace group, which means Killick will be looking for fresh investments, both in the aerospace segment and in its Atlantic Canadian venture capital business.

“This frees up a significant amount of capital,” said Dobbin. “We’re very pleased with the process.”

VSE agreed to pay an initial US$184 million at the close of the deal, and make deferred payments of as much as US$45 million plus working capital, depending on whether the acquired businesses meet certain milestones.

Dobbin said his group invested a total of US$33 million in investment capital in the four businesses since Killick Aerospace was formed in 2006. The Texas company buys and nurtures a range of aerospace repair and support businesses, catering to such customers as commercial airlines to equipment manufacturers. The outfit reported revenue in 2014 of about US$225 million, about half of which came from the operations that have been sold.

The remaining business comprises two units, its aircraft parts supply and engine field services operations. Dobbin will be looking for fresh acquisitions for Killick Aerospace, but the deal with VSE includes a non-compete clause. So any new acquisitions will not be in businesses that compete with the businesses VSE just bought.

Another investor that benefits from the VSE deal is Calgary’s Alaris Royalty Corp., which bought preferred units in Killick Aerospace in 2011. The sale of the four businesses removes the need for preferred capital so Killick Aerospace bought back these units from Alaris. The Calgary fund said earlier this month it would realize a 54 percent gain on its investment in Killick Aerospace.

Killick Aerospace President and CEO Russell Starr will remain with the Texas company.

Meanwhile, Dobbin said that he and Killick Capital Vice-President of Investments Tom Williams are considering one or two new VC investments in Atlantic Canada. The investment firm, which oversees capital for the Dobbin family, has been talking to a few companies, getting to know their business, and will make investment decisions in due course.

Killick Capital’s current holdings include film industry software provider Celtx and Max, a recreational facility operator in the St. John’s area.

“I think in the future we’ll be more limited by bandwidth with just Tom and me than by capital,” said Dobbin.