World's largest rotor blade repair company works on blades from virtually all helos made

Composite Technology, Inc., the largest independent rotor blade repair company operating worldwide, has been acquired by a syndicate of Philadelphia based private equity firms assembled as a holding company called Ranger Composites LLC.

CTI is headquartered in the Dallas-Fort Worth Metroplex and has facilities in Canada, Brazil, England and Singapore. The investor syndicate includes Meridian Venture Partners, Argosy Investment Partners, Spring Capital, Ranger Aerospace LLC and other private investors. Senior financing for the acquisition was provided by Comerica Bank in Dallas.

CTI was previously owned by an Australian investment group. Exact terms of the investment will not be disclosed. The closing date of the acquisition was April 23, 2004.
 
CTI performs extensive repairs and modifications to rotor blades for almost every helicopter type built in the world, and is licensed by Agusta, Bell, Eurocopter, Kazan Helicopters, MD Helicopters, Schweizer and Sikorsky, and respective local aviation regulatory authorities. In aggregate through all of its overhaul facilities, CTI processes on average more than 250 rotor blades each month, and performs over 200,000 man-hours of technical service annually.

CTI has been a market leader in rotor blade repairs for over 30 years for both military and civil helicopters. Specializing in bonded structures, both metal and composite, CTI also manufactures composite parts. CTI gives its customers online access to their repair status through its website, and offers one of the industry's most aggressive warranty policies (2000 hours or 3 years).

CTI also maintains a rental pool of spare rotor blades and offers rotor blade exchange, so its customers can keep flying. CTI's largest facility is in Grand Prairie, Texas (DFW metro area); other facilities are in Winnipeg, Canada; Rio de Janeiro, Brazil; Andover, England; and Singapore.

Mike Topa, the long-serving President of Composite Technology, said that "This new affiliation is expected to expand our capabilities, broaden our services and enhance our competitive position." Topa noted that CTI offers various STC's for special repairs that only CTI performs, and other proprietary bonded repair techniques. "Our focus remains on customer service, quality, worldwide support, reduction of direct operating costs and strict adherence to design authority's standards," Topa added.

Steve Townes, CEO and founder of Ranger Aerospace LLC, commented that "Composite Technology is a strong and growing company, with an exceptional reputation for high quality, customer performance, reliability, and safety. Our objective is to carefully grow CTI as an integral element in our overall consolidation strategy in rotorcraft services. Rotor blade repairs and composite repairs are a steady, growing part of the military and commercial helicopter aftermarket. CTI is a solid strategic fit, and an important expansion of our geographic service footprint."

The largest investor in Ranger Composites LLC is Meridian Venture Partners, with offices in Radnor, PA. "MVP" is a private equity investment firm that provides capital to later-stage growth companies, and financing for acquisitions and recapitalizations. MVP's portfolio companies represent diverse industries, including aviation, publishing, media, specialty retailing, manufacturing, life sciences, and software. Part of MVP's stated investment approach is to invest in companies seeking to consolidate an industry by acquiring competitors or similar businesses in other geographic markets.

The other institutional investor partners in Ranger Composites LLC are: Spring Capital Partners, L.P., a local Radnor, PA based company whose focus is on high performance medium sized companies in the Mid- Atlantic U.S.; Argosy Investment Partners, L.P., also a local company based in Wayne, PA, which invests in a broad portfolio of companies that have strong growth potential, proven management teams, and a strategic competitive advantage; and Ranger Aerospace LLC, with offices in Berwyn, PA, is a privately held investment and management holding company with private equity institutions, venture capital companies, and management as shareholders.

FMI: www.rotorblades.com www.rangeraerospace.com, www.meridian-venture.com www.springcap.com www.argosycapital.com