American Capital invests $108 million in Paradigm Precision deals

American Capital Strategies Ltd. (www.americancapital.com) and affiliated companies have invested $108 million in the Paradigm Precision Holdings LLC buyouts of Smith West Inc. (www.smithwest.com), Palmer Manufacturing Co., Inc. (www.palmermfgco.com) and Eurocast SA, which are all manufacturers of precision machined aerospace engine components.

The investment of Bethesda-based American Capital takes the form of a senior credit facility, senior secured subordinated notes and equity. American Capital Equity Fund I LLC, a fund managed by American Capital, provided 330 percent of American’s equity investment in Paradigm Precision.

Paradigm Precision is a newly formed entity established to buy machining suppliers in the aerospace industry.

Smith West is a manufacturer of precision machined jet engine components including housings, cases, shroud segments, half rings, combustion liners and torque tubes. These components are used for commercial, business and defense jet engines.

Palmer Manufacturing makes and assembles complex aircraft engine parts with a focus on combustion, rotating hardware and structural components. The company’s products are used in commercial, regional and business jets in addition to military and marine applications.

Eurocast, a subsidiary of Palmer, is in Tunis, Tunisia and manufactures castings in addition to doing light machining for aerospace customers.

American Capital partnered with Wimbleton Partners LLC on the Smith West transaction and partnered with Radiua Partners LLC on the Palmer and Eurocast deals.