AeroSat Takes On Another $14M From PE Backers
Dow Jones, LBO Wire, June 2, 2008
Small / Amherst, N.H.
By Paul Ziobro
Industrial Goods/Services
6/2/2008 - AeroSat Corp., a maker of antennas that allow television and high-speed internet access on airplanes, has raised $14 million in growth equity from existing and new investors, including buyout shop CAI Capital Management Co., to help accommodate a boom in business.
Investing alongside CAI are aviation investor AeroEquity Inc. and hedge fund PAR Capital Management. CAI and AeroEquity originally invested $30.6 million in AeroSat in April 2006, purchasing the company from a number of venture capital investors. North Atlantic Capital is another investor in the company, a holdover from the group of venture investors.
CAI Managing Partner Peter Gottsegen said the capital infusion will help AeroSat keep up with heightened demand. The company recently won contracts to supply the antennas on aircrafts for Alaska Air Group Inc., Southwest Airlines Co. and another undisclosed airline.
AeroSat, of Amherst, N.H., has no debt on its books, and the investors weren't about to add some now for fear of slowing down growth.
"Rather than borrowing money and leveraging up, we'd rather do it with a little more equity to allow the company more flexibility," Gottsegen said.
The investment also anticipates growth from any new orders it picks up in the coming months. AeroSat plans to hire an additional 40 employees by year's end to assist in that effort.
The company makes antennas that allow corporate and commercial aircraft to receive satellite signals so passengers can watch television, connect to high-speed Internet and use cellphones while airborne.
AeroSat was founded in 1997, and in the past five years has quadrupled its work force and increased production capacity tenfold, AeroSat Chief Executive Michael Barrett said in a statement. Financial figures were not disclosed.
CAI is investing in AeroSat out of its third fund, CAI Capital Partners & Co. III LP, which closed with C$375 million (US$377 million) in 2005. The firm is currently in the market to raise between C$700 million and C$800 million for Fund IV, LBO Wire has reported.
Gottsegen declined to comment on fund-raising matters.
PE briefly noted: June 2, 2008
CAI Capital invests in AeroSat
Toronto private equity firm CAI Capital Management Inc. said it has invested $14 million in AeroSat Corp., a Merrimack, N.H.-based supplier of communication systems for aircraft. AeroEquity Inc. and PAR Capital Management Inc. also provided funding for the takeover. On May 5, CAI Capital's portfolio company Corix Group Group of Cos. announced that it had acquired Barber Group of Cos., a western Canadian provider of measurement and control equipment to oil, gas and industrial products companies.