The Carlyle Group Closes Sale of Stellex Aerostructures to GKN; First Exit of a Control Investment for Carlyle's Distressed Team

New York, NY – Global private equity firm The Carlyle Group today announced that it has closed its sale of Stellex Aerostructures to GKN. Carlyle Strategic Partners, Carlyle's distressed investment fund, purchased Stellex in October 2004. Financial terms of the cash transaction were not released.

Stellex Aerostructures manufactures highly engineered subsystems and components for the aerospace and defense industries. Stellex’s three divisions provide the following goods and services: large complex machined parts and structural sub-assemblies for the aerospace industry; and precision aircraft hinges and other structural components for the aerospace and space industries. Stellex employs 650 people in three facilities in three states.

Raymond A. Whiteman, Carlyle Managing Director and Co-head of the distressed investing team, said, "This has been a superb investment for us. By combining our distressed investment experience with Carlyle’s noted aerospace expertise, we worked with management to win new business, streamline cost structures and increase profitability."

Mr. Whiteman added, "The distressed market offers significant promise. We’ve seen an increase in proprietary deal flow and secondary market opportunities across Carlyle’s core industry verticals."

Carlyle Strategic Partners is Carlyle’s distressed investing group focused on acquiring the debt and post-reorganization equity of operationally sound, financially distressed companies. Carlyle Strategic Partners invests throughout the capital structure in bank loans, public debt, structured equity and public and private equity with a focus on control-oriented investments.

Stellex Aerostructures
Stellex Aerostructures manufactures highly engineered subsystems and components for the aerospace and defense industries. Stellex Aerostructures operates three divisions: Stellex Monitor Aerospace, Inc., Stellex Precision Machining, Inc., and Stellex Bandy Machining, Inc. Monitor and Precision Machining are leaders in the manufacturing of large complex machined parts and structural sub-assemblies for the aerospace industry. Bandy Machining provides precision aircraft hinges and other structural components for the aerospace and space industries.

GKN plc
Technology based, highly engineered systems, structures and components from GKN can be found in the vehicles and aircraft from the world's leading aerospace, automotive and off highway manufacturers. GKN employs 40,000 in more than 30 countries and reported sales of £3.6 billion in 2005.