American Capital, and its affiliated funds, have received $129 million in debt and equity proceeds, subject to post-closing adjustments, from the sale of portfolio company Paradigm Precision Holdings. Dynamic Precision Group, which is backed by the Carlyle Group, acquired Paradigm Precision on Jan. 31. American Capital said it received $127 million. American Capital invested in Paradigm Precision in 2007.
American Capital, Ltd. (Nasdaq: ACAS) (“American Capital”) announced today that its portfolio company Paradigm Precision Holdings, LLC (“Paradigm Precision”) was sold to Dynamic Precision Group, a portfolio company of The Carlyle Group (NASDAQ: CG), on January 31, 2013. American Capital and its affiliated funds have received $129 million in debt and equity proceeds, subject to post-closing adjustments, of which $127 million was received by American Capital. American Capital’s compounded annual rate of return earned on its senior debt, subordinated debt and equity investments since the first quarter of 2007 was 11%, including interest, dividends and fees earned over the life of its investment.
“American Capital is proud of its role in building Paradigm Precision into a leader of precision machined aerospace engine parts,” said Myung Yi , Senior Vice President and Managing Director, American Capital Special Situations Group. “American Capital has been fortunate to partner with an outstanding management team, which has driven Paradigm Precision’s growth and successful expansion into global markets.”
“Over the course of our investment, Paradigm built a strong position in all key and next-generation engine platforms,” said Yaniv Zief , Vice President, American Capital Special Situations Group. “We believe that Paradigm Precision is a great addition to Dynamic Precision Group’s business.”
Paradigm Precision is a leading and premier global supplier of precision aerospace components for jet engine manufacturers. Based in Peabody, Massachusetts with additional facilities in Malden, Massachusetts; East Berlin, Connecticut; Tempe, Arizona; Guaymas, Mexico, and; Tunis, Tunisia; Paradigm Precision is a manufacturer of highly complex, close tolerance parts and assemblies used mainly in aircraft engine and industrial gas turbines. In addition to working with all of the major turbine engine original equipment manufacturers, the company also supplies parts used in land-based power generation and other specialty applications.
During the first half of 2007, American Capital and an affiliate invested in Paradigm Precision for the One Stop Buyouts® of Smith West Inc. (“Smith West”), Palmer Manufacturing Co. Inc. (“Palmer”) and Eurocast S.A. (“Eurocast”), leading manufacturers of precision machined aerospace engine components. In addition, in September 2008, American Capital invested in Paradigm Precision to support the acquisition of TM Industries, Inc., a high-precision machining company that specializes in machining large size, highly technical parts for customers in the aerospace, power generation, oil and gas and defense markets. For more information on American Capital’s investment in Paradigm Precision, please go to www.americancapital.com/Pages/our_portfolio/companies/paradigm_precision_holdings.aspx.
Since American Capital’s 1997 IPO through the fourth quarter of 2012, the company has earned a 10% compounded annual return, including interest, dividends, fees and net gains, on over 340 realizations of senior debt, subordinated debt, equity and structured products investments, totaling $18 billion of committed capital. American Capital earned a 27% compounded annual return on the exit of its equity investments, including dividends, fees and net gains.
For a chart showing a partial listing of American Capital’s exited portfolio companies, please go to http://www.americancapital.com/Pages/our_portfolio/exited.aspx.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $18.6 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $117 billion of total assets under management (including levered assets). American Capital, through a wholly-owned portfolio company, manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC) with approximately $10 billion market capitalization and American Capital Mortgage Investment Corp. (Nasdaq: MTGE) with approximately $850 million market capitalization. From its eight offices in the U.S. and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $750 million. For further information, please refer to www.AmericanCapital.com.
This press release contains forward-looking statements. The statements regarding expected results of American Capital are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
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