Precision Products Completes Recapitalization
Aluminum Precision Products, Inc. (APP or the
Company), headquartered in Santa Ana, California, announced the sale
of a significant minority interest to the Company’s existing Employee
Stock Ownership Plan (ESOP). AWC Advisors was engaged by APP and
its majority shareholders to evaluate strategic alternatives and then
design and implement a highly customized ESOP transaction structure
to meet the needs of the Company’s selling shareholders while
simultaneously ensuring APP’s continued financial flexibility and
strength. This transaction continued AWC’s longstanding history
of creating tailored solutions for shareholders with complex
ownership succession objectives.
APP, founded in 1965 by Philip S. Keeler, is a leading international
supplier of aluminum and titanium forgings to the aerospace and
automotive industries with seven manufacturing facilities in
California and Virginia. The Company is also a
major producer of high and low pressure aluminum compressed gas
cylinders for SCUBA, beverage, medical, and industrial applications.
Today, APP is led by two of the founder’s sons, Gregory S.
Keeler and Roark L. Keeler, and employs more than 800 employees.
“We had arrived at a juncture where it was time to address our
succession plans for APP. We looked at a broad set of
alternatives, including a sale to a strategic party, and decided that
what worked best for all our stakeholders was a leveraged ESOP.
We knew from the start that a transaction that met all of our goals
was going to be challenging to achieve. We wanted the ownership
succession transaction to be a significant step that would provide
liquidity for us but one that would not burden the Company with
excessive debt. The transaction structure designed and
implemented by the AWC team more than met our goals. We were
very pleased with the service provided by the AWC team, with the
depth and the breadth of their knowledge and their dedication to a
successful outcome. We now have an ownership structure in place
that ensures that APP will remain competitively positioned with the
financial flexibility to pursue a full range of strategic objectives”
stated Gregory S. Keeler, APP’s CEO.
AWC Advisors worked with the APP ownership and management team to
implement a transaction structure that met the complex needs of all
of the constituent parties. Richard C. May, a founder of AWC
Advisors, commented “On behalf of our AWC team, I share a strong
sense of accomplishment with APP shareholders as well as with APP
management and their advisors in completing this leveraged ESOP
transaction. This assignment posed significant structuring and
implementation challenges. Our design work focused on how to
balance liquidity for shareholders with the need to maintain adequate
capital reserves for the projected growth of this dynamic company.
Each of the parties worked together to achieve that
objective. APP is now poised to continue to achieve great
things in the marketplace with a structure that rewards all key
stakeholders. We appreciate the opportunity to have worked with
About Aluminum Precision Products, Inc.
APP was formed in 1965 and has been led by Gregory S. Keeler and
Roark L. Keeler since 2009. The Company is a leading producer
and manufacturer of aluminum and titanium conventional and precision
forgings, assemblies, open-die (hand) forgings, aluminum compressed
gas cylinders, and impact extrusions, with plants located in
California and Virginia. APP provides aluminum forgings for the
aerospace and automotive and motorcycle after-market parts
industries, as well as cylinders for the diving industry. The
Company is headquartered in Santa Ana, California, and employs
approximately 840 active employees.
About AWC Advisors
AWC Advisors, LLC is the advisory arm of American Working Capital, a
merchant banking firm headquartered in Chicago, with additional
offices in New York, Boston and Atlanta. With over 150 years of
collective experience, AWC Advisors’ investment professionals have
worked with hundreds of owners and management teams running
businesses at critical inflection points in terms of their ownership,
growth and strategic development. AWC Advisors has extensive
experience in transactions and investments involving broader-based
employee ownership or ESOPs and has been at the forefront of some the
most innovative and successful management/employee-led buy-out and
recapitalization transactions to date. The firm is owned and
managed by a group of experienced financial and management
professionals with extensive experience working with privately held
businesses, their owners and management teams.
For more information on AWC Advisors, LLC or American
Working Capital please visit www.awcadvisors.com or
contact Bryce C. May directly at 312-244-6955; firstname.lastname@example.org