Hansen Aerospace, a leading provider of aerospace non-destructive testing services, joined Phenna Group following a management buyout in April 2019.
This acquisition, driven by shared values such as a commitment to quality and customer service, and a vision for growth that includes expanding service offerings and market reach, has since propelled Hansen Aerospace to new heights. Eric D’Orio, a key family member and CEO at Hansen Aerospace, played a pivotal role in the transition and now serves as the Divisional Managing Director for Phenna Americas.
This case study explores the acquisition’s motivations, processes, and outcomes, offering insights into the partnership’s profound impact on Hansen Aerospace’s growth trajectory.
About Hansen Aerospace
Hansen Aerospace was established in 1982 and is located in Danvers, just 15 miles north of Boston, Massachusetts. The proximity to Boston allows them to service major aerospace companies worldwide. Hansen Aerospace prides itself on its capabilities, commitment to customer service, and on-time delivery while never sacrificing quality.
Over the past four decades, Hansen has grown to become a globally recognised leader in nondestructive testing and boasts the world’s largest independently owned immersion ultrasonic facility. PT, MT, VT, grain size inspection, and specialised coatings complement their UT department.
Services Include:
Ultrasonic Inspection
Spot Micro Inspection
Fluorescent Penetrant Inspection
Magnetic Particle Inspection
Chemical Processing and Coating
The Acquisition Journey
Initial Attraction to Phenna Group
The partnership was founded on a strong preexisting relationship between the Hansen family and Paul Barry, Founder and Chairman
of Phenna Group.
This connection, built over years of collaboration, mutual respect, and trust between people, combined with the opportunity the family felt they had to grow the business within a more extensive portfolio while still retaining operational autonomy, made the idea of joining the Phenna Group appealing.
Starting the Conversation
As larger strategic competitors in the U.S. began acquiring businesses, the Hansen family recognised that it was the perfect opportunity to align with a partner like Phenna Group.
The Phenna model of preserving autonomy while offering strategic support resonated strongly with Hansen’s goals, sparking acquisition discussions.
The Decision Factors
While Phenna Group was a start-up at the time, the Hansen family felt Paul Barry presented a compelling and well-articulated growth plan.
This vision, aligned with Hansen’s values of maintaining independence while leveraging external resources, convinced the family to proceed. They were attracted to a culture free from bureaucracy where mutual respect is prevalent.
Alignment in Values and Vision
Phenna Group’s commitment to autonomy, coupled with financial and operational backing, perfectly matched Hansen Aerospace’s goals.
The alignment ensured a smooth transition without disrupting Hansen’s internal culture or employee morale.
Cultural Impact
Eric and the management team experienced a remarkably smooth transition, with little impact on Hansen Aerospace’s internal
culture.
This continuity reassured employees, who remained loyal, proud, and excited to be part of a larger group.
Post-Acquisition Benefits and Changes
Immediate Changes
The acquisition brought seasoned professionals into Hansen’s management, offering critical market insights and operational guidance.
Market Position and Competitiveness
The timing of the acquisition was pivotal. With competitors being absorbed by larger firms, Hansen leveraged Phenna’s resources to expand capabilities and maintain its customer base.
The acquisition of TDF Metal Finishings, supported by Phenna, further strengthened Hansen’s service offerings.
Key Resources from Phenna Group
Hansen has benefited from access to various resources, including financial backing, human resources, legal advice, marketing expertise, and group insurance.
The direct relationship with Phenna’s CEO and Chairman has also been invaluable to the management team at Hansen.
Group Insurance Benefits
Joining the Phenna Group allowed Hansen Aerospace to access group insurance benefits, resulting in lower insurance costs while achieving higher coverage levels. This improvement has been a substantial financial and operational advantage for the company.
Operational Improvements and Market Expansion
Hansen saw significant operational enhancements post-acquisition, including investments in new equipment, workforce expansion, and a bolstered management team.
With Phenna’s support, Hansen Aerospace has expanded its testing services, becoming a one-stop shop for significant jet engine manufacturers.
They have secured long term agreement with several of their largest customers, who have praised the company’s ability to grow alongside their needs. These changes have helped double the company’s size.
Success and Future Outlook
Milestones Achieved
Hansen Aerospace is currently experiencing its best financial year to date and anticipates surpassing this success in 2025. COVID-19 hit the aerospace market heavily.
During the pandemic, Phenna supported Hansen, helping them maintain their position and grow back aggressively.
The company has now expanded its workforce by 50% and fully recovered from the impacts of COVID-19, demonstrating its resilience and potential for future growth.
Future Plans
Hansen Aerospace is committed to further growth, aligning with major players in the aerospace market and backed by Phenna’s capital support. This exciting future outlook underscores the company’s potential for continued success.
For Phenna Group, Eric said that he wants to focus on U.S. expansion and plans to aggressively build the Americas division, focusing on a wide array of testing, inspection, and certification companies that align with the group’s strategic goals.
Reflecting on the Decision
Eric shared that the acquisition has been a life-changing experience for himself, his family, and the business.
The partnership with Phenna has been enriching both professionally and personally, offering opportunities to learn from global business leaders and explore diverse testing models. They enjoyed the experience so much that Eric went on to say the family continued to reinvest in the business as they grew.
Eric D'Orio
CEO, Hansen Aerospace and Divisional MD, Americas
The acquisition of Hansen Aerospace by Phenna Group has proven to be a strategic and mutually beneficial partnership. By maintaining Hansen’s autonomy while providing robust support, Phenna has enabled the company to thrive in a competitive market.
The journey underscores the power of shared vision, trust, and strategic collaboration in achieving growth and success. Specifically, the acquisition has brought seasoned professionals into Hansen’s management, offering critical market insights and operational guidance, expanding Hansen’s capabilities and maintaining its customer base, and providing access to various resources, including financial backing, human resources, legal advice, marketing expertise, and group insurance.
For businesses considering a similar path, Hansen Aerospace’s story is a testament to the transformative potential of aligning with the right partner.