American Capital, Ltd.
) declared the divesture of its portfolio company Paradigm
Precision Holdings, LLC to Dynamic Precision Group - a portfolio
The Carlyle Group LP
). The sale took place on Jan 31 this year.
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American Capital received $127 million for the deal in debt and
equity income, whereas its affiliated funds received $2 million,
inclusive of post-closing adjustments.
Earlier in 2007, American Capital and an affiliate invested in
Paradigm Precision for the One Stop Buyouts of Smith West Inc.,
Palmer Manufacturing Co. Inc. and Eurocast S.A. Later, in Sep
2008, American Capital invested in Paradigm Precision for the
acquisition of TM Industries, Inc.
Based in Peabody, Mass., Paradigm Precision is a premier global
supplier of precision aerospace components for jet engine
manufacturers in both domestic as well as global markets. It
produces highly complex, close tolerance parts and assemblies
primarily used in aircraft engine and industrial gas turbines.
Along with working with all of the major turbine engine original
equipment manufacturers, the company provides parts used in
land-based power generation and other specialty applications. It
also has additional facilities in Mass., Conn., Ariz., Mexico,
Also, in 2012, American Capital divested its portfolio company
Aptara Inc. to iEnergizer Limited for $144 million. Of the
proceeds, American Capital and its associates received $134
million, subject to post-closing adjustments, out of which about
$108 million was solely received by American Capital.
American Capital directly and through its asset management
business, initiates, underwrites and manages investments in
middle-market private equity, leveraged finance, real estate and
structured products. Since its IPO in 1997 through the fourth
quarter of 2012, the company has earned 27% compounded annual
return on the exit of its equity investments, including
dividends, fees and net gains.
American Capital carries a Zacks Rank #1 (Strong Buy). Other
companies in the same industry with Zacks Rank #1 (Strong Buy)
Medallion Financial Corp.
ICG Group Inc.