WASHINGTON, DC, September 14, 2011 – Arlington Capital Partners (www.arlingtoncap.com ), a Washington, DC based private equity firm, today announced the signing of a definitive agreement to sell one of its portfolio companies, Consolidated Precision Products Corp. (“CPP”) to an affiliate of Warburg Pincus, a private equity firm headquartered in New York, NY.
Headquartered in Pomona, California, CPP is the largest independent U.S. manufacturer of precision engineered castings components and sub-assemblies for the commercial aerospace, defense and power generation markets worldwide. The Company maintains strong diversity across its aerospace platforms and an unmatched array of casting processes and alloys. Arlington Capital completed its initial platform investment in CPP in 2008.
“We are very proud of the significant achievements that CPP realized after our acquisition and the investment represents another highly successful transaction for Arlington Capital Partners in the aerospace/defense market,” said Peter Manos, a Managing Partner at Arlington Capital Partners. “During our ownership, CPP further increased its market leadership position and we worked closely with an outstanding management team, led by Chief Executive Officer Steve Clodfelter, Chief Operating Officer Ali Ghavami and Chief Financial Officer Ron Hamilton, to drive new business wins.”
Matt Altman, a Partner at Arlington Capital, said, “Capitalizing on its leading position in the aerospace supply chain and the dedicated efforts of its talented management team, CPP significantly improved its operations during our ownership period, and is well positioned to continue its strong growth going forward. We are pleased that this sale will deliver attractive returns for our investors and we wish the CPP team continued success in the future.”
Steve Clodfelter, CPP’s Chief Executive Officer, said, “We are pleased with the results of our partnership with Arlington Capital and we thank the Arlington team for their support and stewardship. We would not have been able to achieve such strong growth rates without Arlington’s industry relationships, acquisition expertise and strategic guidance.” Ali Ghavami, CPP’s Chief Operating officer, added, “Now, going forward, we are excited to partner with Warburg Pincus and their significant capital base, and we look forward to continuing our success during the Company’s next stage of growth.”
The transaction is expected to close in the fourth quarter of 2011 and is subject to customary regulatory approvals. Morgan Stanley and Lazard Frères were financial advisors to CPP in the transaction and Kirkland & Ellis was legal counsel.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, DC-based private equity fund with over $1.4 billion of committed capital focused on middle market investment opportunities in growth industries including: aerospace/defense, healthcare services, government contracting, education & training, and business services. The firm’s professionals have a unique combination of operating and private equity experience that enables Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company’s position as leading competitors in their field. www.arlingtoncap.com
About Warburg Pincus
Warburg Pincus is a leading global private equity firm. The firm has more than $30 billion in assets under management. Its active portfolio of more than 125 companies is highly diversified by stage, sector and geography. Warburg Pincus is a growth investor and an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 13 private equity funds which have invested more than $35 billion in over 650 companies in more than 30 countries. The firm is an active investor in the industrial, aerospace and defense sectors. The firm is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mauritius, Mumbai, San Francisco, Sao Paulo and Shanghai. For more information, please visit www.warburgpincus.com
About Consolidated Precision Products Corp.
Consolidated Precision Products Corp. (“CPP”) is one of the world’s largest investment and precision sand casting companies, producing complex super alloy, aluminum, magnesium and steel components for a wide variety of leading military and commercial aircraft, weapon systems, regional/business jets and helicopters. The Company serves a wide range of global, blue chip customers including Airbus, Boeing, General Electric, Honeywell and Lockheed Martin on platforms such as the 787, 737, A320, A340 and F-35 Joint Strike Fighter. The Company operates 11 primary facilities in three countries across the globe.
Peter Manos or Matt Altman
Arlington Capital Partners
5425 Wisconsin Avenue, Suite 200
Chevy Chase, MD 20815
SOURCE: Arlington Capital Partners and BrightStar Education Group, Inc.