Ranger International 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.
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.
Ranger Rotorcraft Group
Ranger Aerospace & Aeronautics, Inc., a private equity consolidator currently specializing in investments in the rotorcraft services industry, 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. Now known as Rotorcraft Services Group, Inc, this enterprise presently has all of its operations at Meacham Field in Fort Worth, Texas. The mission of the Company is to create the largest and best independent rotorcraft technical services company in the South. With 174,000 square feet of hangars and shops, the Company commands a strong position in the helicopter services industry and its aftermarket support sectors. The Meacham Airport operations are one of the largest of their type in the mid-South, with the capacity for scores of helicopter projects per year.