NEW YORK, November 7 -- Castle Harlan, Inc., the New York merchant bank, announced today that its portfolio company, MAG Aerospace Industries, Inc., had signed a definitive agreement to acquire Aero-design Technology, Inc., in a transaction valued at approximately $12 million.
Aero-design Technology is the world's only supplier of trash compactors certified by the Federal Aviation Administration that are currently in use on commercial aircraft.
The company, based in Valencia, California, was sold by its management and venture capital investors. The in-flight trash compactors it designs, manufactures and markets cut down on the space required for trash on aircraft, allowing airlines to reduce galley sizes and add seats, thus increasing passenger revenues.
MAG Aerospace Industries, located in Compton, California, is the world's leading supplier of vacuum and recirculating sanitation systems for commercial and commuter aircraft. In addition, MAG is a leading supplier of similar systems for trains and buses. MAG was acquired in December 1993 by Castle Harlan Partners II, L.P., an investment fund managed by Castle Harlan.
Gil Yanuck, chief executive officer of MAG Aerospace, said the acquisition "represents a unique opportunity to combine market leaders and increase the range of products MAG can offer to its customers."
He noted that these customers include Boeing, Airbus and Amtrak, as well as railroads in many parts of the world, including China, Japan, Korea and Taiwan.
Justin Wender, vice president at Castle Harlan, pointed out that, "while MAG is diversifying its product line, it is keeping its focus on its core competency -- managing the collection and disposal of waste products, primarily on aircraft."
Castle Harlan was founded by John K. Castle, a pioneer in institutional private equity investing through limited partnerships and the former president and chief executive officer of Donaldson, Lufkin & Jenrette, the investment banking firm, and by Leonard M. Harlan, founder and former chairman of The Harlan Company, a diversified real estate finance and advisory firm that was sold earlier this year to Ernst & Young, the accounting firm.
Castle Harlan's portfolio companies have included Delaware Management Company, a Philadelphia money-management firm with more than $30 billion under management; Ethan Allen Interiors, the furniture manufacturer and retailer; Indspec Chemical Corp., a specialty chemical company now owned by Occidental Petroleum; and Morton's Restaurant Group, owner of Morton's of Chicago steakhouses and other restaurants.