NEW
YORK, Nov. 30, 2022 /PRNewswire/
-- Clayton, Dubilier & Rice ("CD&R") and Greenbriar
Equity Group, L.P. ("Greenbriar") today announced definitive
agreements under which CD&R-managed funds and funds managed by
Greenbriar will invest to combine Paradigm Precision ("Paradigm"),
a global independent provider of complex machining, fabrications
and assemblies for engine manufacturers currently majority owned by
funds managed by global investment firm Carlyle (Nasdaq: CG), with
Whitcraft Group ("Whitcraft"), a manufacturer of precision formed,
machined, and fabricated flight-critical aerospace components and
current Greenbriar portfolio company.
The combination of Paradigm and Whitcraft will create a scaled
and diversified manufacturer of complex, high-tolerance components
used in commercial and military aviation engines. Terms of the
transactions were not disclosed.
"We are excited to work with the Whitcraft and Paradigm
management teams, alongside Greenbriar, a leading industrials
investor, to enhance the continued execution of their
customer-centric operations and growth strategy," said Ray Conner, Operating Advisor to CD&R funds
and former President and CEO of Boeing Commercial Aviation, who
will become Chairman of the combined company upon consummation of
the transactions. "We look forward to bringing together the best of
both of these companies by driving operational improvements and an
increased capability set that we believe will benefit customers and
the commercial and military aviation engine market at large."
"Greenbriar was attracted to Whitcraft's talented leadership
team and diverse product offerings when we made our initial
investment in 2017, and we've been pleased with the company's
strong execution and performance over the past five years," added
Noah Roy, Managing Partner at
Greenbriar. "CD&R has a strong track record of driving
operational excellence in the industrial manufacturing sector, and
we believe that our partnership will help drive additional
operational improvements and sustainable growth for the combined
company well into the future."
The combination of Paradigm and Whitcraft will create a leading
supplier in the aerospace industry, merging the companies'
complementary exposures across platforms, manufacturing
capabilities, geographies, skill sets and leadership
teams. The company's enhanced capability set should enable the
combined business to better support its original equipment
manufacturer ("OEM") customers around the world and address the
numerous growth opportunities before it.
"Over the last five years, our partnership with and investment
from Greenbriar has advanced our strategy and enhanced our focus on
operational excellence, and we believe this next step with Paradigm
and CD&R will unlock even greater improvement opportunities for
our customers and our employees," said Doug
Folsom, CEO of Whitcraft Group. "As a combined company, we
are confident that we will enhance our product and process
portfolio and be even better equipped to innovate through Kaizen
and continue to deliver the complex engine components our customers
demand."
"We look forward to this combination with Whitcraft and support
from CD&R and Greenbriar, which we believe will enable us to
strengthen our mission-critical offerings to even more customers
around the world," said Steve Croke,
President and CEO of Paradigm Precision. "We remain committed to
delivering innovative solutions to help solve complex manufacturing
challenges while also continuing to foster a world-class working
environment for our employees."
"We are excited to partner with Greenbriar and invest to
facilitate the merger of these two highly complementary companies,"
added Rob Volpe, Principal at
CD&R. "We look forward to supporting the leadership team as
they pursue the significant opportunity set available to the
combined business."
"Paradigm was originally formed to create a trusted partner to
its customers and the broader aerospace and gas turbine
marketplaces," said Derek Whang,
Managing Director at Carlyle. "Under our ownership, the Company has
made significant progress in achieving this strategic goal and is
well-positioned to continue its mission of serving its customers
through the combination with Whitcraft."
Both transactions are expected to close in early 2023, subject
to satisfaction of customary closing conditions. Perella Weinberg
Partners served as CD&R's and Greenbriar's financial advisor in
the transaction, with Debevoise & Plimpton serving as legal
counsel to CD&R. Kirkland & Ellis acted as legal advisor to
Whitcraft and Greenbriar, and Harris
Williams and Houlihan Lokey
acted as financial advisors to Whitcraft. Latham & Watkins
served as legal advisor and Lazard and RBC Capital Markets served
as financial advisors to Paradigm and Carlyle.
About Clayton, Dubilier & Rice
Clayton, Dubilier & Rice is a private investment firm with a
strategy predicated on building stronger, more profitable
businesses across a broad range of industries, including
Industrials, Healthcare, Consumer, Technology and Financial
Services. Since its inception in 1978, CD&R has managed the
investment of more than $40 billion
in over 100 companies with an aggregate transaction value of more
than $175 billion. For more
information, please visit www.cdr-inc.com and follow the Firm's
activities through LinkedIn and @CDRBuilds on Twitter.
About Greenbriar
Greenbriar is a middle market private equity firm with more than
20 years of experience investing in market-leading services and
manufacturing businesses. With more than $8
billion of cumulative capital commitments, its investment
strategy targets businesses led by experienced management teams
capitalizing on strong long-term growth prospects that can benefit
from Greenbriar's deep sectoral expertise, strategic insight, and
operating capabilities. For more information, please visit
greenbriarequity.com.
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep
industry expertise that deploys private capital across three
business segments: Global Private Equity, Global Credit and Global
Investment Solutions. With $369
billion of assets under management as of September 30, 2022, Carlyle's purpose is to
invest wisely and create value on behalf of its investors,
portfolio companies and the communities in which we live and
invest. Carlyle employs more than 2,100 people in 29 offices across
five continents.
Further information is available at www.carlyle.com. Follow
Carlyle on Twitter @OneCarlyle.
About Paradigm Precision
Paradigm Precision is the premier global independent provider of
precision machining, fabrications, and complex assemblies primarily
for gas turbine engines in addition to offering exceptional high
temperature investment castings. Paradigm provides a wide range of
customer solutions, supporting the commercial and military aircraft
markets as well as the marine and industrial gas turbine
marketplaces. To learn more about Paradigm, please visit
www.paradigmprecision.com.
About Whitcraft Group
Founded on a commitment to relentless, continuous, operational
improvement and extraordinary customer service, Whitcraft prides
ourselves on competitive cost structure, exceptional on-time
delivery, and industry-leading quality. The Whitcraft family of
companies has cultivated long-term relationships with our customers
around the world through respect, teamwork, technology, and trust.
At Whitcraft we are driven to develop industry leading process
innovations and manufacturing techniques on behalf of our
customers. From concurrent engineering to final inspection, our
companies prove every day that we have what it takes to meet your
demanding standards for quality, delivery, and competitiveness. To
learn more about Whitcraft, please visit www.whitcraft.com.
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