Bethesda, MD -- American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $20 million in Kelly Aerospace Inc. in the form of $10 million of senior notes and $10 million of senior subordinated debt with warrants. Kelly is primarily a designer, manufacturer and marketer of turbocharger system products and electrical and fuel system components for both general aviation OEM airframe manufacturers and the general aviation aftermarket. They also manufacture related turbocharger products for the performance automotive market. They will use the investment proceeds to recapitalize outstanding debt and to complete the acquisitions of the Garrett aviation turbocharger line from Honeywell International (NYSE: HON) and Spearco Performance Products, a leading producer of intercoolers for automotive turbocharger applications.
"American Capital's investment in Kelly builds on our expertise in the general aviation industry in addition to our investment in New Piper Aircraft Inc.," said President and COO Adam Blumenthal. "Our ability to provide capital is important for a middle market company like Kelly's continued growth."
"Kelly's seasoned management team has an excellent track record of acquiring and absorbing profitable operating units and product lines," said American Capital Principal and Senior Investment Officer Ira Wagner. "The extensive installed base of general aviation aircraft continues to increase with the resurgence of the industry in recent years, and Kelly is an important supplier to the industry with dominant market shares in certain aviation components. "
"American Capital's investment allows Kelly to continue to grow through strategic acquisitions," said Kelly Chairman and CEO Kent Kelly. "We can grow with our industry, extend our product lines, and serve our customers better by offering more products from a single vendor."
American Capital is a publicly traded buyout and mezzanine fund. American Capital is an equity partner in management and employee buyouts; invests in debt and equity of companies led by private equity firms, and provides capital directly to private and small public companies. American Capital funds growth, acquisitions and recapitalizations.
Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements regarding expected results of American Capital Strategies 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 or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
