Present Investments
Ranger AirShop Holdings, Inc.
Acquisition and Accelerated Growth Investments in a global company serving the Air Cargo sector. Cargo Control Products are manufactured, sold, leased, and repaired for cargo clients at over half of the world’s Top Fifty air cargo hubs. [Commenced in early 2016].
This is Ranger's latest consolidation platform; the operating company is
ACL Airshop. ACL AirShop intends to invest for growth in each of its lines of business, and expand geographically, to keep pace with rising industry trends. The headquarters is near Greenville SC, and the main international office is in Amsterdam NL. The airlines clients number in the hundreds, and they all know that ACL AirShop can deliver excellent quality, on-time delivery, and an absolute cost advantage for anything they need in cargo control equipment. ACL Airshop manufactures, sells, leases, repairs, and logistically manages ULDs (unit load devices) for meticulous customers around the world. ACL Airshop is known to be highly responsive, fast, flexible, and cost-effective. Ranger's strategic plans for this air cargo enterprise are both transparent and ambitious. We intend to substantially expand the global footprint of service centers, increase manufacturing capacity, use LEAN techniques enterprise-wide, develop ancillary revenue lines, and seek complementary acquisitions and joint ventures.
Ranger AeroSystems
Ranger Aerospace and its capital partners in 2014 launched Ranger AeroSystems, Inc., a new Delaware corporation to be used as a consolidation platform for multiple acquisitions. Areas of focus include middle market sized aerospace companies in Precision Manufacturing, Component Overhaul, and Specialty "Niche" MRO (maintenance, repair, and overhaul). Institutional co-investors include Azalea Capital and Argosy Capital. Azalea Capital is headquartered in Greenville SC and has known Ranger for many years. Argosy Capital, based in Wayne PA, has been a major investor in two large previous Ranger Aerospace successes over the past 12 years. The first acquisition in this new platform was a Specialty MRO company performing interiors retrofits on all cabin components for commercial airliners. Other acquisitions and growth investments in this specialized sub-sector of the aerospace industry are being sought. Acquisition inquiries are welcomed.
MOST RECENT PAST INVESTMENTS:
Ranger's most recently divested investment platform consisted of three acquisitions, an internal start-up, and an international joint venture. It was sold in 2012 to a huge strategic buyer, yielding 60% "IRR" on investors' equity and nearly 5-times cash-on-cash returns in the midst of the worst Recession in 50 years. After 2 years of post-merger integration, that platform is now the Operations & Maintenance Platform for the Berger Group of Companies, Inc., a $1 Billion engineering firm.
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 created 1,000 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, 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 the South Carolina.
Ranger's most recent private equity consolidation platform was called Ranger International Services Group Inc., capitalized by the Ranger officer team and by three large institutional venture funds that specialize in middle market equity and mezzanine investments. The lead institutional investor group was First New England Capital, from Hartford, CT (with whom Ranger's CEO had a lengthy relationship as an Advisory Board member). They were joined by Argosy Capital (which had invested with Ranger in previous ventures), and Plexus Capital.
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 provided Ranger International with a large customer base and significant growth potential. The combined enterprise was already pushing toward $100 million revenues in 2010. The compound annual growth rate since 2006 was 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 aerospace services firms 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."
Ranger International Services Group
Ranger Aerospace, a private equity consolidator that specializes in the aviation industry, 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.
Ranger brings 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.
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 came on the heels of its acquisition of government outsourcing contractor CAV International, acquired in the first quarter of 2009. CAV International provides specialized airfield services and logistics in the growing military outsourcing arena. 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."
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.
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.
Hawthorne Services
Following the acquisition of Ranger International by the Berger Group in 2012, in December of that same year, we then in-turn acquired Hawthorne Services, Inc., in Charleston SC. Thus creating a very robust Operations & Maintenance Platform for the Berger Group, this well-integrated platform is poised for continued growth and diversification. The O&M Platform of Berger will remain headquartered in Greenville SC, and provides a cost-effective technical services solution for large clients in the US Government, and Prime Contractors.
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 helps customers get engineering projects done faster at a lower overall cost.
This unit also created a new venture in Riyadh, Saudi Arabia called Ranger Saudia, Ltd., in partnership with a senior ranking member of the al-Saud royal family. Pursuits of the Saudia venture include airfield equipment installations and retrofit, aircraft support, helicopter maintenance, and other government-funded contracting opportunities.
Ranger TechWorks supports 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.
Other Investments:
Ranger Aerospace and its officer level Principals also hold passive investments in real estate, public stocks, financial instruments such as limited partnerships, and other industrial ventures which Ranger Partners are unrelated to and non-competitive with Ranger's current primary Private Equity platform. Ranger and its institutional co-investors are always searching for additional acquisitions, either as bolt-on deals to the existing platform, or as new free-standing investments (inquiries are welcome). Ranger's CEO is on the Board for an aerospace components overhaul company and a Shipbuilding MRO company, unrelated to Ranger's ventures, and serves in an advisory role to other Private Equity funds, buyout companies, the US-China Investment Group, and larger aerospace companies from time to time. Ranger's principals also have from time to time launched other Ranger-branded investment interests which are non-competitive to the primary Private Equity platform. Ranger's founder and his estate hold the worldwide copyrights and trademarks to all of the distinctive branding names, websites, web domains, logos and any other brand imagery and derivatives associated with the Company (see "Legal Disclaimer" sub-section at our Home Page for further details). Usage of the many Ranger Aerospace associated names, brands, derivatives, and other identifiers is only authorized when accompanied by a formal License Agreement with the founder (or his estate).
Ranger Rotorcraft Group
This is now a passive financial investment, with no managerial, fiduciary, or board level involvement. Ranger Aerospace & Aeronautics, Inc. modified its corporate name in 2008 for better branding purposes to Ranger Rotorcraft Group, Inc. The company announced this routine change 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 a new platform investment, in Government Technical Services. Ranger had previously been very successful with its Keystone Helicopter venture, which now exceeds $500 Million revenues under Keystone's new ownership. To avoid marketplace confusion, the "Ranger" branding license was removed from that helicopter enterprise in early 2009.
