AWC Advisors, LLC Advises Aluminum Precision Products on its Recent Recapitalization

 

AWC - American Working Capital

 

Team Contact Information:

Richard C. May
312-244-6959
dick.may@awcfund.com

Bryce C. May
312-244-6955
bryce.may@awcfund.com

W. Ian Laird
312-244-6958
ian.laird@awcfund.com

Richard G. Steingraber
770-596-8718
rick.steingraber@awcfund.com

David C. Light
312-244-6957
david.light@awcfund.com

Daniel J. Christoffel
312-244-6953
dan.christoffel@awcfund.com

Jason S. Rosenthal
312-244-6956
jason.rosenthal@awcfund.com

Christopher Mackin
617-868-4600
chris.mackin@awcfund.com 

 

Aluminum Precision Products Completes Recapitalization
 
September 10, 2012
 

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 everyone involved.”  

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; bryce.may@awcfund.com