Ranger Aerospace Teams with Two Private Equity Institutional Investors to Create Ranger AeroSystems as a New Consolidation Platform
August 18, 2014
GREENVILLE, SC – Ranger Aerospace LLC, a private equity consolidator specializing in aerospace operations and aviation services, has teamed with two substantial Private Equity institutional investment groups to jointly pursue investments and acquisitions in the aerospace industry, seeking to accelerate growth through a collaborative partnership with proven management teams. Multi-company consolidations are a proven investment method in the aerospace industry, including Ranger’s own past successes. The teammates have formed a new holding company called Ranger AeroSystems, Inc. for these pursuits.
These highly experienced organizations are focused on several lower middle market aerospace segments, such as: (a) Precision Manufacturing—sole source & limited source highly engineered flight critical parts on long life airborne platforms, both fixed wing and rotary wing; (b) Component Overhaul–value-added solutions for components, rotables, and sub-assemblies on any airborne system, with special emphasis on actuating systems.; (c) Specialty "Niche" MRO (maintenance, repair, and overhaul)—technical services companies with unique value propositions in supporting commercial or military aircraft. Preferred investments include: $10 million minimum revenues, domestic U.S. location, scalable operations, and Management seeking a like-minded partner from the aerospace industry with strong financial backers. Other aerospace segments will be considered if there is a sound consolidation strategy that can be carried out.
Azalea Capital is a private equity firm headquartered in Greenville, SC and is the Lead Investor in this new enterprise. Azalea invests in lower-middle market companies with revenues of $10 million to $100 million to facilitate management buyouts, business recapitalizations, and growth plans. Azalea’s focus industries are Manufacturing, Business Services, and Value-added Distribution with a special interest in Aerospace, Consumer Packaged Goods, Healthcare, and Energy & Industrial Services. Azalea’s investment strategy is to partner with proven management teams to execute and accelerate growth plans. As business owners with extensive networks and a broad base of experience, Azalea’s investment team understands the challenges businesses face. Azalea’s private equity professionals, advisory board, and investor base, which predominantly consist of CEOs and former CEOs, bring a wealth of knowledge and experience in building businesses and shareholder value across a diverse spectrum of industries.
Argosy Capital for over 20 years has successfully partnered with over 100 management teams to build and grow their manufacturing and business services companies, including two previous large-scale successful ventures with Ranger. Argosy has experience in six major aviation/aerospace related consolidations. Since its founding in 1990, Argosy Private Equity has actively pursued a mission to generate outstanding returns in the lower middle market. The results from more than 50 successful portfolio company exits, across four private equity funds, have been remarkably consistent over time and through varied market conditions. Argosy’s strategy is to source and invest in businesses, often family owned or corporate orphans, with the potential to substantially grow revenues and profits.
Steve Townes, Ranger Aerospace CEO and founder, said "This combination of proven management experts and strong investors bodes well for building a large and lasting enterprise. We have plenty of dry powder and a long runway, and we are focused on aerospace industry segments where middle market consolidation opportunities are there for the making."
Ranger Aerospace is an active player in the consolidation trends that are affecting the aviation industry. Since early 1997, Ranger has sparked hundreds of millions of dollars in buying, selling, and investing transactions as management stewards. Ranger adds value in each investment by bringing accomplished teams to bear on operational improvements and accelerated growth. Ranger focuses heavily on operations, marketing, quality, and people, with a "Good to Great" incremental approach to business transformations. Previous large-scale private equity successes by Ranger Aerospace include Aircraft Service International Group, Inc. ("ASIG"), Keystone Helicopter, and Ranger International. Those three platforms were built-up to substantial critical mass through aggressive internal growth and add-on acquisitions. Each has since grown to even larger scale. Ranger’s previous ventures have employed as many as 4,250 employees, with operations at as many as 56 airfields and operating sites in North America and Europe. Ranger’s management effectiveness has manifested in award-winning quality and superior IRR returns in "realized" investments. Visit www.rangeraerospace.com
Forward Looking Statements: The Company from time to time may discuss forward-looking information. Except for factual historical information, all forward looking statements are estimates by the Company’s management and are subject to various risks and uncertainties that are beyond the Company’s control and may cause actual results to differ materially from management’s expectations.