LOS ANGELES – July 1, 2012 – Vance Street Capital LLC (Vance Street) announced today that it has agreed to sell its portfolio company, Klune Industries, Inc. to Precision Castparts Corp. (NYSE:PCP) for an undisclosed amount. Vance Street acquired a majority interest in Klune in early 2010 and made a subsequent investment to support an add-on acquisition last year. The sale will be the first from Vance Street’s current private equity fund.
Allen Ronk, CEO of Klune, commented, “It has been a pleasure to partner with Vance Street. They provided Klune with the capital, resources, and leadership necessary to build Klune into the Company it is today. We are excited to become a part of Precision Castparts Corp. as we continue to build an industry leading aerostructures supplier to both commercial aerospace and defense markets.”
“Our partnership with the management team at Klune resulted in a successful investment for Vance Street”, commented Partner, Richard Crowell. “Allen Ronk and his team set high standards and Klune has developed into a significant aerostructures supplier. The combination with Precision Castparts Corp. will further enhance the Company’s ability to serve its important aerospace and defense customers.”
The transaction is expected to close in the third quarter. Lazard acted as the exclusive financial advisor to Klune. Paul Hastings LLP acted as legal counsel to Klune.
About Vance Street Capital Vance Street Capital is a Los Angeles based private equity firm. Vance Street makes control investments in middle market companies with enterprise values up to $200 million. Preferred industries include aerospace and defense, medical components and devices, precision industrial manufacturing and business services. For over two decades, the partners at Vance have specialized in middle market investing and are committed to supporting management teams with resources to accelerate revenue growth, improve operations and acquire strategic assets. Vance Street has extensive experience partnering with management, family owners and other co-investors to build leading middle market companies. For more information please visit: www.vancestreetcapital.com.
About Klune Industries, Inc.
Klune, headquartered in Los Angeles, California, is a leading aerospace contractor, manufacturing complex parts, assemblies and components for commercial aircraft, military aircraft and missile systems. The Company specializes in manufacturing doors, nacelles, wings and other aerostructures for the commercial market; and missile systems components, fuel tanks, bomb racks, rotors, ground support and airframes for the military market. Its products can be found on the world’s leading platforms such as Boeing’s 737, 747, 777, 787, Airbus’s A-320, A-350, A-380, and Gulfstream’s G650. For more information visit: www.klune.com.
About Precision Castparts Corp.Precision Castparts Corp. is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power, and general industrial markets. Precision Castparts Corp. is the market leader in manufacturing large, complex structural investment castings, airfoil castings, forged components, and highly engineered, critical fasteners for aerospace applications. In addition, the Company is the leading producer of airfoil castings for the industrial gas turbine market. Precision Castparts Corp. manufactures extruded seamless pipe, fittings, forgings, and clad products for power generation and oil & gas applications; commercial and military airframe aerostructures; and metal alloys and other materials to the casting and forging industries. For more information visit: www.precast.com.