BETHESDA, Md., May 28 /PRNewswire/ -- American Capital Strategies (Nasdaq:ACAS) announced today that it has invested $20 million in The New Piper Aircraft, Inc., in the form of subordinated debt with warrants. Piper designs, develops and manufactures general aviation aircraft for domestic and international markets.
Piper was founded in 1937 and became famous for its World War II ``Cub'' aircraft. Today, Piper offers eight models of piston-powered aircraft that service the personal, business and flight training markets. The company sells aircraft through its domestic and international distributors; most of them have been selling the Piper products since the 1930s. Piper has 95,000 aircraft in operation around the world, including 64,000 registered in the United States representing 27% of all registered piston-powered aircraft in the United States.
Malon Wilkus, President and CEO of American Capital, said: ``Piper is soaring and we are glad to be aboard. I am impressed with the dedication and depth of knowledge of the aviation industry that Piper's management team brings to the table. We look forward to working with this company as it continues to play a leading role in shaping the general aviation market in the next century.''
The New Piper Aircraft management team is led by Chuck Suma, President and CEO, who has been with the company since 1976. Mr. Suma commented: ``Piper has established a long tradition of manufacturing quality aircraft parts as well as providing superior customer service. We see many opportunities for growth as new technology continues to drive the aviation market.''
American Capital Chairman David Gladstone said: ``I have followed the progress of Piper under the management of Chuck Suma since 1992. He is an impressive CEO and he has an impressive track record with Piper. Piper is one of the great brand names in aviation with a long tradition of quality and service. We are pleased to be part of the continued growth of this great company.''
American Capital Principal Ira Wagner said: ``The opportunity to invest in Piper was competitively bid. I am extremely pleased with our ability to rapidly evaluate, underwrite and close the investment.''
American Capital has invested $90 million since its initial public offering in August 1997.
Click here to learn more about this portfolio company.
