News/ Tru Circle Acquisition

Stony Point Arranges Tru Circle Acquisition for Turbine Engine Components Technologies Corporation

ASHEVILLE, NC - The Stony Point Group of Asheville, North Carolina (www.stonypoint.com) is pleased to announce that TECT, a Stony Point portfolio company, has recently completed the acquisition of the Wichita, Kansas and Kent, Washington assets of Tru-Circle Aerospace. Stony Point arranged and managed the transaction, a Section 363 bankruptcy sale, on behalf of TECT.

The transaction presented TECT and Stony Point with the opportunity to capitalize on TECT’s strategic aerospace platform and Stony Point’s experience in distressed asset acquisitions. The following factors highlight the strengths of TECT and Stony Point that brought the deal to a successful conclusion:

• SPEED
  From start to finish, the deal took less than 30 days to complete. Stony Point and TECT first visited the facilities on September 20, they were the highest bidder at the sales hearing on October 1, and the deal was closed on October 18. Stony Point’s experience in transaction evaluation and a TECT credit facility (arranged earlier in 2004) enabled us to meet the aggressive schedule required by
  the bankruptcy sale process.
• BIDDER QUALIFICATION
  After suffering through a long and protracted restructuring
  effort, Boeing, the largest remaining Tru Circle customer was only willing to allow its LTA with Tru Circle to be assigned to “qualified” buyers. After meeting with TECT and Stony Point representatives and reviewing TECT’s aerospace experience, its strategic vision to grow its business, and its balance sheet; Boeing approved and enthusiastically welcomed TECT as the preferred bidder.
  

Tru-Circle specialized in high-speed and palletized machining, cellular manufacturing and multi-axis turning, and provided a wide range of precision sheet metal manufacturing services, utilizing the latest in manufacturing technologies, such as automated CNC routers, water jet cutting and press brakes. Tru-Circle provided a full range of subassembly integration services, including, testing, qualification and certification of kitted and finished assemblies, supplier management and program management. It’s major customers; included, Boeing, Bombardier, Cessna, Fuji Industries, Gulfstream, KHI, Lockheed, MHI, and Vought.

TECT, or Turbine Engine Components Technologies Corporation (www.tectcorp.com) is a custom manufacturing services supplier of semi-finished and finished engine-ready components and assemblies, including, solid and hollow fan blades, compressor blades and vanes, BLISKs, IBRs, impellers, diffusers, turbine airfoils, rotor shafts and hubs,
disks, oversized and precision forgings, and other hardware. TECT serves the aerospace, power generation, rail, off-highway, automotive, and other industries.