22 July 2003
New Piper is under new ownership after a buyout and recapitalisation by American Capital Strategies Ltd, which now owns 94 percent of the company.
American Capital, a publicly traded buyout and mezzanine fund with capital resources of some $1.8 billion, has bought $57 million of Piper’s senior debt for $34 million and provided a loan facility. Affiliates of Exeter Capital Partners, a private equity firm and long-time investor in Piper, has made an additional investment of approximately $1 million for the other six percent of New Piper as part of the recapitalisation.
“While Piper has reduced its new airplane production as a result of the downturn in general aviation after September 11, we believe Piper is an excellent, well-run company,” said American Capital Chief Operating Officer Ira Wagner. “With an iconic brand name in the general aviation industry, we are confident Piper will enjoy great success as the general aviation industry rebounds.”
American Capital Senior Vice President and Managing Director, Gordon O’Brien, added: “This is an exciting opportunity for American Capital to continue our relationship with Piper. We are working with a strong CEO, an industry veteran and innovator, who oversees a well established worldwide dealer network selling an unmatched product offering to a remarkably loyal customer base. Piper’s installed base of 100,000 aircraft worldwide feeds its large proprietary parts business, and its underlying intellectual property is protected by numerous Federal Aviation Administration Type Certificates that govern manufacture of its planes. Its exemplary track record of new product releases and strong pipeline of new products also bode well for its future.”
From Piper’s perspective, CEO Chuck Suma said American Capital would provide the stability and long-term commitment that will ensure Piper’s standing as the general aviation industry’s only full-line manufacturer.
“American Capital’s dedication, support and expertise bring to Piper the necessary resources to excel as we meet market demands with new products and innovations,” he said. “For our part, we have focused on building a committed and talented management team, a strong dealer network, a world-class customer service group and a knowledgeable workforce. We are now in a position to weather the periodic turbulence in our industry and to continue to develop innovative designs in a systematic fashion, focused on customer expectations.”
“For our dealer body, Piper will be a stronger company with more product offerings and innovations than it would otherwise have been able to produce. For our employees, Piper will be a more forward-looking and stable company. At the same time, our vendors can look forward to a more robust product development program and the continuation of long-standing strategic relationships.
“This will enable us to strengthen our focus: modernizing the aircraft design and manufacturing process,” he said. “We can now move forward even more effectively, bringing new product innovations to market every six months to a year.”
More at <a href=”http://www.newpiper.com” target=”_blank”>www.newpiper.com</a>
