Veritas Capital Builds Manufacturing Portfolio –

Continuing acquisitions in the aerospace defense and industrial applications industries, Veritas Capital, through its Veritas Capital Fund, L.P., agreed to acquire metal-parts manufacturer AMTEC Precision Products in a deal valued at more than $100 million. Chase Manhattan Corp. and CIBC World Markets will provide the financing, although Veritas Capital President Robert McKeon declined to disclose terms of the transaction.

Elgin, Ill.-based AMTEC manufactures machine metal parts and components for its industrial customers, which include Ford Motor Co., General Motors and Caterpillar Inc. It has approximately 800 employees and $91 million in 1999 fiscal year sales.

The deal is set to close in October when Veritas Capital will combine AMTEC with Worthington Precision Metals-also a Veritas company that manufactures metal parts-making Worthington a division of the larger AMTEC. Worthington, acquired by Veritas in October, is headquartered in Mentor, Ohio, and Franklin, Tenn. The company has approximately 375 employees. It is almost half the size of AMTEC, McKeon said, and reported $60 million in revenue for 1998. Worthington and AMTEC have yet to decide on a new name for the combined entity.

McKeon said combining the two companies’ operations will maximize efficiency by allowing customers to receive parts from the manufacturing site-each company has three facilities-that is geographically closer.

Further Advances in Aerospace

In a separate deal slated to close in the fourth quarter, Veritas Capital has agreed to acquire Nasdaq-traded Advanced Technical Products (ATP) for $14.50 per share, or $135 million, with 5.26 million shares outstanding. The Roswell, Ga.-based company also manufactures parts for the aerospace and defense industries. ATP, which had $165 million in 1998 sales, employs 1,600 people at five offices.

New York-based Veritas Capital currently manages Veritas Capital Fund, L.P., a $175 million fund with seven investments including Republic Technologies International, Zeta Technologies and Sierra Research Inc.