The Carlyle Group Sells NP Aerospace in Morgan Crucible-Sponsored MBO

London – Global private equity firm The Carlyle Group today announces that it has sold its portfolio company NP Aerospace Ltd., a UK manufacturer of lightweight composite armour systems, through a management buyout sponsored by The Morgan Crucible Company plc for £71 million.

NP Aerospace, based in Coventry, is one of Europe’s largest suppliers of specialist composite mouldings to the aerospace, medical imaging, automotive and defence industries and was acquired by The Carlyle Group in November 2005. Since acquisition Carlyle has supported the company in achieving revenue growth of 75% and profit growth of more than 100% from 2005 to 2006. In 2007 NP Aerospace won a significant contract from a strategic customer to armour and integrate electronics on a new fleet of protected patrol vehicles and ongoing orders to supply high-performance composite body armour.

Chris Hodges, Associate Director, The Carlyle Group, said, “Carlyle’s investment in NP Aerospace has been positive both for the company and for our investors. By strengthening the board and supporting management in its efforts to provide the highest levels of quality and service to domestic and international customers, we have been able to build profitability and put the company on an excellent footing for the future. At the same time, our investors have enjoyed a healthy return on their investment.”

David FitzGerald, Managing Director and Co-Head of the Carlyle Europe Technology team, said, “NP Aerospace is an outstanding example of British engineering and innovation and we are proud to have supported the company through our investment. We are delighted that management has realized its ambition to acquire the company and we wish them well in taking NP Aerospace to the next stage of success in partnership with Morgan Crucible.”

The investment in NP Aerospace was made through Carlyle Europe Technology Partners, L.P., a €222 million fund that focuses on investments in the Technology, Media and Telecommunications industries, with an enterprise value of between €25 million and €200 million.