Ranger Aerospace returned to its roots by bringing its headquarters back to Greenville SC in early 2009, from Texas. As part of the move, the company invested approximately $28 million in the acquisition of two new subsidiaries with 1,000 current employees. Over time, Ranger expects to create at least 1,000 additional new jobs in its many far-flung operating locales, as well as some headquarters jobs locally. Founded in Greenville in early 1997 by the same core team of officers running it today, Ranger Aerospace at that time quickly grew through acquisitions in four years to 4,250 employees and was recognized by the State Chamber of Commerce as one of the top 25 largest private employers headquartered in South Carolina.
Ranger’s newest private equity consolidation platform is called Ranger International Services Group Inc., which is capitalized by the Ranger International officer team and by three large institutional venture funds that specialize in middle market equity and mezzanine investments. The lead institutional investor group is First New England Capital, from Hartford, CT (with whom Ranger’s CEO had a lengthy relationship as an Advisory Board member). They are joined by Argosy Capital (which has invested with Ranger in previous ventures), and Plexus Capital. Ranger’s new headquarters office is located in the Parkway Plaza building on The Parkway, near the Marriott GSP Airport hotel and Michelin’s headquarters campus.
Ranger re-entered the airfield services industry in January 2009 with the majority buyout of CAV International Inc., which specializes in airfield services and base logistics. In 2008, CAV performed over 625,000 man-hours of quality-driven professional services, handled over 18,000 USAF airplanes across 19 time zones, processed over 850,000 in-transit military passengers, managed over 140,000 tons of cargo, and ranked 573 on the prestigious “Inc. 5000” for its remarkably rapid growth in the preceding three years.
Much larger than the CAV investment, Ranger added to its government services portfolio with the August 2009 acquisition of US Logistics Inc. US Logistics is a government outsourcing contractor specialized in aircraft technical services, tactical vehicle overhauls and repairs, technical staffing and base logistics. US Logistics has skilled personnel deployed at overhaul depots and maintenance centers in the United States and overseas, working directly for Prime Contractors and for the U.S. government. US Logistics recently won a three-year contract for overhauling tactical vehicles at the Marine Corps logistics base in Barstow, Calif., a program that will employ up to 300 people in Barstow alone.
Both acquisitions have provided Ranger International with a large customer base and significant growth potential. The combined enterprise is already pushing toward $100 million revenues in 2010. The compound annual growth rate since 2006 has been 32 percent per year. Bill McLendon, Ranger’s chief operating officer, said, “Our business model is sustainable and repeatable, so as we buy and eventually sell companies, we look forward to doing it from right here in Greenville. We profitably grew and managed a 4,000-person enterprise from here with operations strung across 11 time zones, so what we’re doing now is in many ways a repeat of that earlier success. We’ll keep repeating this pattern in the coming years, steadily improving our growth techniques along the way.”
Ranger TechWorks was launched in 2010 as the Engineering Services subsidiary of this newest Ranger platform. Specialized in providing all forms of Engineering support to the Government Technical Services arena, Ranger TechWorks is offered as a cost-effective tool for DOD and Prime Contractor clients who need surge capacity with highly skilled engineers, technical staff augmentation, full project execution at an absolute cost advantage, and speedier delivery of engineered work packages.
“Ranger Aerospace’s move to South Carolina provides another boost to our state’s aviation sector. The company’s decision to return here speaks volumes to the state’s skilled workforce and efforts to foster a business-friendly climate that allows businesses to prosper. We recognize that Ranger had a world of choices when choosing where to invest and we welcome their return to Greenville,” said Joe Taylor, the state’s Secretary of Commerce.
Ranger is seeking additional acquisitions in the Carolinas and elsewhere, and is always looking for talented people to add to its teams in the operating companies. Companies seeking a merger or acquisition with Ranger should contact the CEO directly, in complete confidentiality. There are hundreds of middle market sized government services contractors based in the Carolinas. Greenville was recently ranked as one of the best small cities in North America for business in a nationwide “Cities of the Future” study. The SMSA metro area of Greenville-Spartanburg has a population of roughly 1.1 Million, and downtown Greenville has been ranked as one of the Top Ten Best Downtowns in the United States because of its successful 25 year revitalization investment program, becoming a model of “New Urbanism.”
INVESTMENTS: Ranger International Services Group
Ranger Aerospace, a private equity consolidator that specializes in the aviation industry, has re-entered the airfield services industry with the majority buyout of CAV International, Inc. CAV (pronounced as in “Cavalry”) is a government outsourcing contractor specialized in airfield services and logistics. Ranger’s newest investment platform is called Ranger International Services Group, Inc., which acquired a majority stake in CAV International in the 1st quarter of 2009. Additional growth investments and acquisitions are planned for this latest Ranger build-up. This segment of the government outsourcing sector is expected to exhibit continued growth in the years ahead. CAV has enjoyed over 50% compound annual growth rates over the past four years of 2005-2008.
All of DOD’s transport-sized aircraft, combined with the “CRAF” fleet of civilian airliners, together are the primary fleet that CAV serves with its many capabilities, and that combined airlift represents, by far, the “largest airline in the world.”
The US Government is pursuing competitive sourcing and privatization to free up dollars for its highest priorities, especially modernization. This trend has continued since the 1990’s and remains strong today. The armed forces are committed to pursuing outsourcing and privatization initiatives across all of the service branches, as well as in other non-military Government agencies. Competitive sourcing is designed to maximize cost-effectiveness and efficiency, thus enhancing mission capability, by using services available in the commercial sector.
The four principal goals driving this long term trend are:
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sustain readiness |
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improve performance and quality by doing business more efficiently and cost-effectively |
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generate funds for force modernization |
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focus personnel and resources on core missions, with the government retaining ownership and control of the activity. |
It is within this arena that CAV has established its strong reputation for quality, reliability, and cost-effectiveness. Ranger will bring new resources to CAV in order to grow the business more aggressively in the coming years. Ranger’s investors believe that this enterprise has the potential to expand to substantial scale and critical mass, thereby giving strong and reliable performance to a growing roster of government and commercial customers.
In its previous successfully exited consolidations, Ranger Aerospace made significant value enhancements in the airfield services companies that it operated, driving business development via investments in people initiatives, capital equipment, quality systems, process improvements, and customer service. “ASIG” became the top ranked competitor in its field after just 3 years of dedicated efforts under Ranger, while simultaneously more than doubling in size. ASIG is now one of the largest aviation services companies of its type in the industry, with over 7500 employees at more than 60 major airports in North America and Europe, and continues winning annual quality awards. During Ranger’s ownership, ASIG won numerous quality awards, including best-in-class rankings in independent surveys of hundreds of airlines.
In each of its largest and most successful previous multi-year ventures (ASIG and Keystone), most of the value creation by Ranger occurred through internal improvements and aggressive growth of the initial platform company, combined with complementary acquisitions. While growing the companies deliberately and quickly through increased marketing tempo and effective promotion, Ranger also dramatically increased internal capital spending and investments, improved employee benefits and incentive plans, and worked steadily to improve morale and leadership communications. In all of its operations, Ranger enforces a serious and continuous focus on Quality, Safety, and F.A.R. Compliance.
INVESTMENTS: US Logistics
Ranger Aerospace aggressively increased its government services operating investments with the 2009 acquisition of US Logistics, Inc., a government outsourcing contractor specialized in aircraft technical services, tactical vehicle overhauls and repairs, technical staffing, and base logistics.
US Logistics is a veteran owned company in Fayetteville NC, with over 600 employees working with the US military and larger prime contractor customers. US Logistics’ six divisions provide a variety of support services including the maintenance and modification of tactical vehicles, aircraft maintenance services, warehouse and logistics solutions, human resources outsourcing, and technical staffing. US Logistics has become a recognized segment leader in outsourced services with its well trained, diverse workforce, responsible for the successful execution of various projects in 8 countries and 38 states in the United States.
Ranger International’s investment in US Logistics (www.us-l.com) comes on the heels of its acquisition of government outsourcing contractor CAV International, Inc. (www.cavint.com), acquired in the first quarter of 2009. CAV International provides specialized airfield services and logistics in the growing military outsourcing arena. Total employment across US Logistics and CAV International by the end of 2009 will be over 1,000 skilled professionals specialized in the servicing of military vehicles and aircraft, airfield services, and base logistics support. Overall size of the merged company is estimated by management to be roughly $100 Million by year-end. The combined operation of US Logistics and CAV International has a broader geographic footprint, a greater array of customers, and offers a wider variety of skilled technical services. Both Ranger subsidiaries are continuing to grow steadily, with robust bidding pipelines and opportunities for expansion.
Steve Townes, CEO of Ranger International Services Group and founder of Ranger Aerospace LLC said: “This acquisition allows us to expand both the breadth and depth of our government services capacity and provide better services to our customers in more locations worldwide. This investment quickly vaults us forward to an outstanding level of critical mass on behalf of our customers and employees. We view this deal as a critical next step in achieving our long term objective of building a highly specialized independent Government Services & Logistics provider that is focused on solving our nation’s airfield, vehicular overhaul, logistics, and base services challenges domestically and abroad. US Logistics works at the heart of that mission, and we look forward to continuing to build its capability under the Ranger umbrella.”
The founder of US Logistics, Mr. Michael Boyce, remains in his role as President and CEO of that Ranger unit, and is a substantial stakeholder in this growth enterprise. “This acquisition provides us with the resources and momentum required to be more competitive in the marketplace and serve larger, more diverse customers,” said Boyce. “It also expands the career opportunities for our highly specialized employees.”
Additional growth investments and acquisitions are planned for this latest Ranger Aerospace build-up. This segment of the government outsourcing sector is expected to exhibit continued growth in the years ahead.
In its previous successfully exited consolidations, Ranger Aerospace made significant value enhancements in the aerospace services companies that it operated, driving business development via investments in people initiatives, capital equipment, quality systems, process improvements and LEAN innovations, and enhanced customer service programs. The plans for US Logistics and CAV International mirror those previous accomplishments and successes. In its two largest previous consolidations, Ranger caused most of the value creation for its shareholders and employees through internal improvements and aggressive sales growth of the initial platform company, combined with complementary acquisitions. In all of its operations, Ranger Aerospace enforces a serious and continuous focus on Quality, Safety, and F.A.R. Compliance.
INVESTMENTS: CAV International
CAV International (pronounced as in “Cavalry”) provides air terminal and ground handling services and passenger terminal operations for the US Air Force’s Air Mobility Command, the air component of the US Transportation Command (USTRANSCOM). Located at Scott AFB, Illinois, USTRANSCOM provides air, land, and sea transportation for the Department of Defense, both in time of peace and time of war.
CAV International operates in the growing military outsourcing arena, specialized in airfield services. CAV has established a strong reputation for quality, reliability, and cost-effectiveness. The company maintains a lean cost model, and is able to offer its Government or Prime Contractor customers an absolute cost advantage combined with measurably superior quality metrics on a consistent basis. In 2008, CAV performed over 625,000 man-hours of quality-driven professional services, handled over 18,000 USAF airplanes across 19 time zones, processed over 850,000 in-transit military passengers, and managed over 140,000 tons of cargo. In 2008 CAV also distinguished itself by becoming a recognized fast growing company listed on the prestigious “INC. 5000” roster in “INC” Magazine. Considered to be experts at Airfield Services & Logistics, CAV operates at numerous locations stretching from Alaska to Kuwait.
Founded in 1996, CAV International’s employee base consists of a far-flung workforce of 345 full-time personnel. The Company’s talented and seasoned management team has on average over 20 years of contract management and logistics experience, with a heavy career focus on Airfield Services & Logistics. CAV International provides the best value for government services with the lowest risk. The Company’s excellent track record and guiding principles and ethics make CAV International a consistently selected contractor of choice for the USAF. CAV is now expanding into other branches of the military, as well as establishing teaming and subcontracting relationships with major Prime contractors.
INVESTMENTS: Ranger TechWorks
Ranger International in 2010 launched a new Engineering Services business unit, Ranger TechWorks, to provide comprehensive technical and engineering services and adjunct engineering staffing solutions to branches of the DOD, other Government agencies, OEMs, Prime Contractors, and modification & engineering centers.A full range of engineering disciplines will be made available at customers' sites, tailored to each customer's needs and electronically linked with the headquarters in Greenville, SC. Ranger TechWorks, offering quality leadership in engineering services, will operate as a separate wholly-owned business unit of Ranger International. It will be a sister company to Ranger's other operating subsidiaries, US Logistics and CAV International.
Ranger TechWorks' President is Steve Hanvey, a well known senior executive in both DOD and Commercial aerospace design and sustaining engineering, testing & certification. He has over 3 decades of senior experiences that created new engineering solutions and substantial scale at Raytheon Aircraft/Beech, McDonnell Douglas, and Piaggio USA. Hanvey, a graduate of the US Naval Academy at Annapolis, is an accomplished engineering leader, program manager, entrepreneur, and test pilot. Ranger TechWorks will help customers get engineering projects done faster at a lower overall cost. Working in tandem with US Logistics and CAV International, this unit gives the enterpriser higher levels of technical capability and engineering capacity.
Ranger TechWorks will support customers with creatively tailored and cost effective engineering for new projects, carve outs for product development, subassembly design, modification engineering, sustaining engineering support, certifications and STC's (supplemental type certificates), or simple staff augmentation to smooth out manning requirements when rapid growth is being planned or reductions have become necessary.
INVESTMENTS: Ranger Rotorcraft Group
This is now a passive financial investment, with no managerial or board level involvement. Ranger Aerospace & Aeronautics, Inc. modified its corporate name for better branding purposes to Ranger Rotorcraft Group, Inc. The company announced this routine change in December 2008 as part of larger plans by Ranger Aerospace LLC to invest in other industry sectors in the coming years under the "Ranger Aerospace" brand. Ranger Aerospace then created its newest platform investment, in Government Technical Services. This rotorcraft enterprise presently has all of its operations at Meacham Field in Fort Worth, Texas, and has no affiliation with Ranger's government services companies. With 174,000 square feet of hangars and shops, the rotorcraft operation commands a strong position in the helicopter services industry and its aftermarket support sectors, chiefly in the civilian segment. The Meacham operations are one of the largest of their type in the mid-South, with the capacity for scores of helicopter projects per year. Ranger had previously been very successful with its Keystone Helicopter venture, which now exceeds $500 Million revenues under its new ownership. Ranger's investment in helicopter activities is now simply a passive financial investment via THP/Ranger AeroPartners LP, a co-investment with another Private Equity group in Dallas TX. Ranger has no active role with that investment, and to avoid marketplace confusion, the "Ranger" branding license was removed from that helicopter enterprise in early 2009.