Cornerstone Capital Acquires Keystone Engineering

Cornerstone Capital Holdings has acquired Keystone Engineering Company from UTC Aerospace Systems, a division of United Technologies. This transaction represents the fourth aerospace acquisition completed by Cornerstone and is the second consecutive corporate divestiture transaction it has completed. Keystone’s management team will continue to operate the business and guide its growth strategy.

Keystone designs and manufactures highly-engineered satellite propellant tanks, launch vehicle domes and other ancillary space products. Keystone also services and refurbishes the rotodome bearing assembly for the Airborne Warning and Control System (AWACS) aircraft and is the sole-source supplier of bearing assembly refurbishment for the U.S. Air Force and NATO. Keystone was founded in 1907 and is headquartered in Long Beach, CA with a second manufacturing facility located in Ontario, CA (www.keyengco.com).

Acquisition financing was provided by Penn Mezzanine based in Wayne, PA (www.pennmezz.com) and Fifth Third Bank.

Cornerstone Capital Holdings invests in middle-market niche manufacturing and industrial service businesses with revenues ranging from $5 million to $100 million and EBITDAs from $1 million to $10 million. The firm has offices in Los Angeles, CA and Blue Bell, PA (www.cstonecapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-8-13