San Diego-based Huntington Capital, a private equity firm that targets lower-middle-market opportunities, has made an additional investment of an undisclosed amount in an existing portfolio company: Advanced Structured Alloys. The financing is part of a preferred equity co-investment with Crosse Partners.
SAN DIEGO, CALIF. (Jan 24, 2012) – Huntington Capital, Fund II (“Huntington”), a San Diego based, lower-middle market, mezzanine fund has announced an additional investment in portfolio company Advanced Structured Alloys (“ASA”). The new financing is part of a preferred equity co-investment with Crosse Partners and the capital will be used to support a new market opportunity in the Compressed Natural Gas (CNG) sector. The CNG aluminum liner project is one of several projects that are expected to transition ASA from an automotive parts manufacturing company into a technology and alternative fuel/clean energy based company.
ASA is a high-end manufacturer of specialty forged aluminum automotive products located in Oxnard, CA. The company has developed unique manufacturing capabilities allowing it to design, engineer and produce high quality, forged and spin formed aluminum products for a broad range of market segments. Since Huntington’s initial investment in ASA, the company’s operational and financial performance has significantly improved while creating new jobs in a prominently blue-collar community with a high unemployment rate.
The high-tech aluminum cylinders are designed specifically for CNG-powered medium and heavy-duty vehicles (buses, trash trucks, and 18-wheelers). This strategic opportunity to utilize its manufacturing capabilities to build a new division focused on the alternative fuel and clean energy sector is expected to drive growth and lead to increased green economic activity. In 2011, ASA became the first company in the US to receive formal certification to manufacture a large diameter Type 3 aluminum liner for the 300-liter CNG market. ASA expects to receive certification for the 400L, 500L, and 600L cylinders in 2012. CNG is a fossil fuel substitute for gasoline, diesel, or propane/LNG and is generally regarded as a more environmentally clean alternative to gasoline, diesel and propane.
“We anticipate that this clean technology opportunity is capable of creating an additional 50 new jobs at ASA in 2012,” said Tim Bubnack, Managing Partner at Huntington Capital. “ASA has been a leading example of our focus on underserved companies with a successful and differentiated baseline business that is leveraging its core capabilities to develop new products that address broader markets. We are excited about the financial potential of the CNG cylinder program and proud that ASA is having a measurable impact on the community of Oxnard, California.”
Based in San Diego, CA, Huntington Capital is a leading mezzanine capital provider to lower-middle market companies throughout California and the Southwestern United States. Founded in 2000, Huntington is currently operating out of its second fund, Huntington Capital Fund II, which it raised in 2008, with capital commitments from a group of leading institutional investors. Huntington seeks to invest in established lower-middle market businesses generating between $10 million and $75 million in revenues across a broad range of industries. Investments are typically structured in the form of growth capital, buyout or acquisition financing ranging between $2.0 million and $7.0 million. The firm has invested in approximately 45 companies since its founding. For more information, please visit the company website at www.huntingtoncapital.com.
Advanced Structural Alloys
Advanced Structural Alloys, LLC is a high-end manufacturer of forged and spun aluminum products for the automotive, military vehicle, aerospace and natural gas container market segments. ASA is a fully integrated contract manufacturing business that maintains some of the most advanced process technologies in the industry. The company operates out of an approximately 100,000 sq ft. facility located in Oxnard, CA (a LMI Enterprise zone) and employs 75 individuals, 61% of the employees qualify as minorities and 69% of the workforce resides in LMI regions.