American Capital has sold its portfolio company Pan Am Holdings and its subsidiaries, including Pan Am International Flight Academy, to ANA Holdings, parent company of All Nippon Airways Co.
American Capital and its affiliated funds received $94 million in debt and equity proceeds and realized a gain of $12 million from the transaction. Of the total proceeds, American Capital received $79 million, realizing a gain of $7 million from the transaction. American Capital’s compounded annual rate of return earned on its debt and equity securities over the life of its investment was 16%.
American Capital acquired Pan Am International Flight Academy in July 2006. In September 2010, Pan Am completed the add-on acquisition of Aeroservice Aviation Center, a commercial simulation provider based in Miami. Then in December 2012, Pan Am completed a second add-on acquisition with the purchase of Airline Career Academy, a pilot training academy.
Today, Pan Am International Flight Academy is a provider of simulator-based flight training to commercial airlines and professional pilots. The company grew out of the flight simulation and training center of the former Pan Am Airways and offers airlines and individuals training on over 60 full-flight simulators with courses for pilots, cabin crew, mechanics and aircraft dispatchers. Principal customers are commercial passenger airlines and air freight carriers, which are primarily regional carriers in North and South America, and air traffic control authorities worldwide. The company has training facilities in Miami, Orlando, Memphis, Minneapolis, Las Vegas, and Cincinnati. Pan Am International Flight Academy was founded in 1992 and is based in Miami (www.panamacademy.com).
“We are extremely pleased with the results of our sale of Pan Am and excited for the company to join ANA, a leading aviation group with global operations,” said Myung Yi, Managing Director, Special Situations Group. “Our investment in Pan Am is an excellent example of our Special Situations Group’s commitment to growing portfolio companies through leveraging American Capital’s diverse industry knowledge, including aerospace, and working closely with management teams to expand companies’ operations, market reach and service offerings.”
American Capital is a publicly traded private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $119 billion in total assets under management and has eight offices in the US, Europe and Asia. The firm is headquartered in Bethesda (www.AmericanCapital.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 8-26-13
