Investment will accelerate growth and support strategic plan

New York, NY and Tulsa, OK – Global investment firm The Carlyle Group (NASDAQ: CG) and family-owned aerospace company NORDAM today announced that The Carlyle Group has agreed to make an equity investment in The NORDAM Group, Inc., an aerospace manufacturing and repair company. Carlyle’s equity, along with new debt financing, will fund NORDAM’s exit from Chapter 11, de-lever the business and position the company for continued growth. The Siegfried family will retain its 50-year ownership and oversight of the business, and continue to lead the company forward. Carlyle’s equity will come from Carlyle Strategic Partners IV L.P.

Founded in 1969 by the Siegfried family’s late patriarch, aerospace-industry leader Ray Siegfried II, NORDAM is an aerospace manufacturer and provider of critical maintenance, repair and overhaul services (MRO) to the business, commercial and military aviation end-markets. With highly differentiated composites capabilities, NORDAM is committed to the superior performance and quality of its products as well as its customer-centric approach to MRO services. The company provides services to a global customer base through its nine strategically-located operations and customer support facilities on three continents.

“This is an important milestone for NORDAM as we exit Chapter 11 and embark on our next chapter of growth,” said Meredith Siegfried Madden, Chief Executive Officer of NORDAM. “We are thrilled to partner with Carlyle and look forward to working together to continue providing world-class products and services to our valued customers and enhancing flight safety globally. With Carlyle’s deep industry, operational and financial expertise, we believe we will be well positioned to execute on our strategic plan, expand our business and take advantage of the many growth opportunities that lie ahead.”

Shary Moalemzadeh, Managing Director and Co-Head of Carlyle Strategic Partners, said, “We are excited to partner with NORDAM’s outstanding management team and support the high-quality business they have built over the past 50 years. NORDAM has a stellar reputation for providing industry-leading products and services across global aviation end-markets. With this investment and the support of Carlyle’s global platform, we are confident that the company will have the right capital structure and resources to continue its legacy as a best-in-class aerospace manufacturer and provider of MRO services.”

Evan Middleton, Managing Director of Carlyle Strategic Partners, said, “NORDAM has established itself as a key partner to the U.S. military and business and commercial customers around the world. As a respected, differentiated provider of aerospace products and services, we see significant opportunities for continued growth, both organically and through acquisitions. We look forward to working closely with the NORDAM team to scale the business, expand into new end-markets and further develop the company’s composites capabilities – creating value for all stakeholders.”

The transaction is expected to close early in the first half of 2019, subject to Bankruptcy Court approval and satisfaction of customary closing conditions, including regulatory approval.

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About NORDAM

Founded in 1969 on family values with multiple, strategically-located operations and customer support facilities around the world, Tulsa-based NORDAM is a leading independently owned aerospace company. The firm designs, certifies and manufactures integrated propulsion systems, nacelles and thrust reversers for business jets; builds composite aircraft structures, interior shells, custom cabinetry and radomes; and manufactures aircraft transparencies, such as cabin windows, wing-tip lens assemblies and flight deck windows. NORDAM also is a major third-party provider of maintenance, repair and overhaul services to the military, commercial airline and air freight markets. Learn more about NORDAM at NORDAM.com.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $216 billion of assets under management as of December 31, 2018, Carlyle’s purpose is to invest wisely and create value on behalf of our investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,650 people in 31 offices across six continents.

Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market-commentary

Media Contacts

The Carlyle Group:
Devin Broda
Sard Verbinnen & Co.
+1 (212) 687-8080
Carlyle-SVC@sardverb.com

Mecadaq Group, a leading provider of high precision manufacturing for the aerospace industry, has announced the acquisition of Hirschler Manufacturing Inc., a US based company specialised in hard metal machining. The acquisition is another step in Mecadaq’s consolidation strategy , reinforcing the subcontracting chain in the aerospace supply.

Based near Seattle, Washington, USA, with €9m in turnover, Hirschler Manufacturing Inc. produces high-precision mechanical parts made from hard metals such as titanium, stainless steel, and inconel. The company has been a strategic supplier for more than 50 years to large clients in aerospace such as Spirit AeroSystems, Mitsubishi Heavy Industries, or Boeing, which has given the company the “supplier silver award“.

By joining the Mecadaq Group, Hirschler Manufacturing brings its customer portfolio, a recognised know-how in producing critical, complex parts, and quality of service. The company is committed to integrating Mecadaq’s production activities located in California.

This is the third external growth operation in less than 24 months for the Mecadaq Group, bringing its consolidated revenue to nearly €60m and staff to 300 employees.“It is quite an accomplishment for our company with the opportunity to accelerate our growth in North America and also to work directly with “The Boeing Company” as a Tier 1 supplier of detail parts,” said Julien Dubecq, President of Mecadaq Group. “This marks also a major step for Mecadaq, celebrating 10 years anniversary since the first US branch opening.”

“This transaction will allow our Group to reach in just two and a half years the level of turnover we had expected in fiveyears,” added Benjamin Moreau, Partner of Activa Capital. “ In addition to this lead over our original business plan, this external growth transaction reinforces Mecadaq’s leadership position by giving us the potential for new organic growth outside of France.”

Deal Participants

Buyers

Mecadaq Group: Julien Dubecq

Activa Capital: Benjamin Moreau, Christophe Parier, David Quatrepoint

Fiscal and Financial Due Diligence: PWC (Andrew Miller, Lisa Jackson)

Legal Due Diligence: Drinker, Biddle & Reath (Luc Attlan, Rémy Nshimiyimana)

Environmental Due Diligence:  ERM (Gary Walters)

Corporate Lawyers USA: Drinker, Biddle & Reath (Luc Attlan,

Rémy Nshimiyimana)

Corporate Lawyers France: Hoche (Grine Lahreche, Christophe Bornes)

Financial Advice: DC Advisory (Alexis Baron)

Strategic Advice: Aero Invest Consulting (Alinh Hoang)

Financing Bank: Société Générale (Marie-Laure de la Grandière)

Sellers

Hirschler Manufacturing: Gerald Hirschler

Financial Advisors: First Hill Partners (Michael Black)

Lawyers: Stokes Law (William Neal)

About Mecadaq Group

Mecadaq is an industrial group specialised in the manufacturing and assembling of high-precision mechanical parts for the world’s leading aerospace companies. With turnover of nearly €60m, Mecadaq has 300 employees in 7 sites: 4 sites in France (Tarnos, Pessac, Marignier and Chanteloup-les -Vignes, 2 sites in the US(California and Washington), 1 site in Tunisia(Tunis).

Learn more about Mecadaq at mecadaq.com or on Twitter @MecadaqGroup.

About Activa Capital

Activa Capital is a leading French mid-market private equity firm. Activa Capital manages over €500m of private equity funds on behalf of a wide range of institutional investors. Activa Capital partners with ambitious mid-sized French companies, valued at €20m to €200m, seeking to accelerate their growth and their international footprint.

Learn more about Activa Capital at activacapital.com or on Twitter@activacapital.

Activa Capital Media Contacts

Steele & Holt

Media Contacts

Benjamin Moreau

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Partner

Daphné Claude

+33 1 43 12 50 12

+33 6 66 58 81 92

benjamin.moreau@activacapital.com

daphne@steeleandholt.com

Christelle Piatto

–

Communications Manager

Claire Guermond

+33 1 43 12 50 12

+33 6 31 92 22 82

christelle.piatto@activacapital.com

claire@steeleandholt.com

Activa Capital, an independent French private equity firm, and Mecadaq, a leading provider of high precision manufacturing for the aerospace industry, announce the acquisition of Armoa, a company specialised in high precision machining. The acquisition takes place 18 months after the creation by Activa Capital of a consolidation platform in aerospace subcontracting.

This is the second significant build-up for Mecadaq, which already generates revenues of €32 million in aeronautic subcontracting, primarily in the area of machining of aero structure parts for civil aircraft. Financed with bank debt and additional capital provided by Activa Capital and Mecadaq’s management, the acquisition will increase the group’s revenues to over €50 million. Based outside Paris, in Chanteloup -les-Vignes, with revenues of €18 million, Armoa is a family-owned business that for 40 years has specialised in providing high precision machining of small and medium size aluminium aero structure parts.

The company’s excellence in this area has made it the manufacturer of choice for top clients in the aeronautics sector, such as Stelia (Airbus), Daher, and Thalès. “We are delighted to bring on board the operational excellence of the Armoa team,” said Julien Dubecq, President of Mecadaq.

“In addition to being complementary on industrial grounds, this acquisition reinforces our organisation by Business Unit (milling, turning, gear and spline machining, assembly).

Since our clients are constantly searching for ways to optimise their supply chain, this new industrial organisation will allow us to develop our commercial relationships with large clients in the aeronautic sector.” “This operation, the second step in our consolidation program undertaken in early 2016, will bring Mecadaq to the symbolic level of €50 million in revenues.

With four specialised sites in France and two abroad, Mecadaq has the critical size that will make it possible to reinforce its position among large partners and lients in aeronautics,” added Benjamin Moreau, Partner, Activa Capital.

Mecadaq Group is currently holding discussions with several other Players in aeronautics subcontracting. The priority is to target further acquisitions both in France and overseas, which could be financed with new acquisition lines put in place this summer.

About Mecadaq Group

Mecadaq is specialisedin the production and assembly of precision-made mechanical parts for the world’s leading aeronautical manufacturers. Prior to this build-up, Mecadaq had turnover of nearly €30 million, employs 300 professionals spread across its four sites: three sites in France (Tarnos, Pessac and Marignier) and one site in the US (California). To find out more about the company, please visit the website at Mecadaq.com or on Twitter@MecadaqGroup.

About Activa Capital

Activa Capital is a leading French mid-market private equity firm. Activa Capital manages over €500m of assets on behalf of a wide range of institutional investors. Activa Capital partners with ambitious mid-sized French companies, valued at €30m to €200m, seeking to accelerate their growth and their international footprint. Learn more about Activa Capital at activacapital.comor on Twitter @activacapital

The company will use the money to produce a finished product and to start selling.

Sally R, founded in 2016, is developing a new system for climate management in real estate. By combining technology for closed systems for space stations using its own technology, Sally R may provide an air cleaner that provides a cleaner and better air with minimal power consumption.

Today, taking the climate systems in air from the outside and then sends out the excess. This requires a lot of energy, because the outside air must be filtered, heated or cooled depending on outdoor conditions. In space there is no outdoor air and where the air must be treated and recycled.

Sally R’s algorithm combines both systems and determine how much air should be based on how much should be recycled and how much should be cleaned using space technology.

This is a major improvement over the current system, where you have to choose between air quality and energy conservation. If you reduce the ventilation energy is saved, but get less air. Emphasis is however on cleaner air, as in an operating room, it draws more power.

With Sally Rs solution to get both.

– Given that buildings account for 1/3 of the world’s energy consumption, we see great potential for the company, says Jenny Jansson, investment manager at Almi Invest. Sally R has a very good team and a great product for a growing market that requires less energy.

The company will now apply for a patent and produce a first marketable version of the product.

– This investment will allow us to take the next step, says Sally R’s CEO and founder Viktor Kjellberg. Air pollution in the world’s a big problem and where we hope to make a difference.