Piper Aircrat under new ownership

Aviation International News » August 2003
August 4, 2008, 7:10 AM

Piper announced on July 21 that American Capital Strategies, a minority (about 2 percent) shareholder in the company since 1998, has acquired 94 percent of the Vero Beach, Fla.-based manufacturer’s voting equity. The announcement followed word on July 15 that ACS had secured Piper’s bank debt for approximately $75 million. Piper president and CEO Chuck Suma described American Capital, based in Bethesda, Md., as a publicly traded “buyout and mezzanine” fund with capital resources of approximately $1.8 billion. Among the 70 or so companies in which ACS is involved is Kelly Aerospace, which makes Janitrol aircraft heaters. Also as part of the recapitalization, affiliates of Exeter Capital Partners, a private equity firm and long-time investor in Piper, made an additional common equity investment of approximately $1 million for 6 percent of the common equity. Suma noted that half of ACS’s portfolio are manufacturing companies, and he emphasized that from Piper’s perspective, “American Capital will provide the stability and long-term commitment that will ensure Piper’s standing as the general aviation industry’s only full-line manufacturer.”

Until the recapitalization last month, Philadelphia-based Dimeling Schreiber & Park held the largest stake in New Piper Aircraft, with 46 percent. Piper expects revenues of about $137 million and deliveries of 250 aircraft this year.

Share this...

Please Register

In order to leave comments you will now need to be a registered user. This change in policy is to protect our site from an increased number of spam comments. Additionally, in the near future you will be able to better manage your AIN subscriptions via this registration system. If you already have an account, click here to log in. Otherwise, click here to register.