March 2006
DynaBil Industries, Inc., a manufacturer that supplies aerospace and military contractors, including Boeing and Sikorsky, is expanding its business thanks to an investment by the New York State Common Retirement Fund, DeltaPoint Capital III L.P. and HSBC Capital (USA) Inc., New York State Comptroller Alan G. Hevesi announced today.
The Common Retirement Fund (CRF) is investing $2 million in DynaBil through DeltaPoint Capital III. L.P. and HSBC Capital (USA) Inc. as part of the pension fund's program to commit venture capital funds specifically to New York State businesses. Currently, the Fund has committed $409 million to private equity funds throughout New York State. The $2 million being invested by the Pension Fund in DynaBil is helping to leverage a larger investment by DeltaPoint and HSBC. As a result, DeltaPoint and HSBC have acquired a controlling interest in the company from its founders, Mike Grosso and Hugh Quigley. Gross and Quigley will remain owners of DynaBil following the transaction and will continue in their capacities as Chief Executive Officer and President of the Company, respectively.
DynaBil manufactures precision sheet metal components and assemblies and is a supplier to major aerospace manufacturers, including Boeing and Sikorsky. In the past year, DynaBil added 39 jobs to its Coxsackie, New York based manufacturing facility for a total of 160 jobs. It also increased revenue nearly 20 percent.
"The current consolidation trend in both the commercial and military aerospace supply chains has presented companies such as DynaBil with the opportunity to broaden their manufacturing and service capabilities to meet customer demands," Grosso said.
"This investment positions DynaBil to seek out complementary acquisitions that allow it to take advantage of this opportunity," Quigley said.
David Waterman, one of DeltaPoint's Managing Directors, said, "This investment will allow one of New York State's leading manufacturing companies to address the needs of its customers and continue to add skilled manufacturing jobs to Upstate New York." He added that "this will further DeltaPoint's core strategy of investing in New York State's best companies to help them achieve their long-term growth objectives."
"We are very excited about the prospects for DynaBil," said Stephen Hindmarch, a Managing Director of HSBC Capital (USA) Inc. "This investment will place DynaBil on an ideal footing to broaden and expand its business of providing complex components and assemblies to the aerospace industry."
Additional financing for this transaction was provided by Pine Street Capital LP and Citizens Bank, N.A.
About the Common Retirement Fund
The $130 billion New York State Common Retirement Fund is an in-state private equity investment program. The fund, whose sole trustee is Hevesi, has committed $409 million to 16 managers located throughout New York State. The program provides market rate returns to the pension fund while providing capital for New York businesses.
About DynaBil Industries, Inc.
DynaBil, located in Coxsackie, New York, is a manufacturer of precision sheet metal components and assemblies and a tier 1 supplier to major aerospace manufacturers. The company is ISO 9001: 2000 Accredited, AS 9100 Accredited and has been recognized numerous times by major aerospace manufacturers. Visit us today at www.DynaBil.com.
About DeltaPoint Capital Management, LLC
DeltaPoint Capital III is the third pool of private equity capital managed by DeltaPoint Capital Management, LLC which targets investment in established, privately owned or closely held companies located in New York State. DeltaPoint Capital III plans to invest in as many as 15 businesses over the next five years. The principals of DeltaPoint Capital have been actively involved in providing investment capital to companies in New York State for the past 17 years. Through two prior capital funds and other investments, DeltaPoint's principals have invested in several Western New York companies and are actively managing four of these prior investments. DeltaPoint Capital III, LLC is licensed by the U.S. Small Business Administration as a Small Business Investment Company (SBIC).
About HSBC Capital (USA) Inc.
HSBC Capital (USA) Inc. was established in 1991 and currently manages approximately $500 million in committed capital. HSBC Capital provides private equity and mezzanine capital to profitable small to mid size companies across the United States. HSBC Capital is part of the HSBC Group, one of the world's leading financial institutions. For more information, visit www.hsbc.com.