W. P. Carey Acquires Two Manufacturing/Distribution Facilities in Mississippi and Oklahoma
31 Day Closing of Sale-Leaseback Financing Supports Strategic Acquisition by Leading Designer and Marketer of Specialty Lighting and Outdoor Products
NEW YORK – January 17, 2007 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it has completed the acquisition of two manufacturing/distribution facilities in Flora, MS and Muskogee, OK for approximately $6 million on behalf of W. P. Carey’s affiliated income generating real estate fund, Corporate Property Associates 16 - Global Incorporated (CPA®:16 - Global). The properties are leased under a long term triple net lease to Optronics Products Company, Inc. and two of its affiliates (“Optronics”). The transaction, which closed in only 31 days, was completed as part of the acquisition of Primos, Inc. by Optronics’s parent, which is majority owned by Svoboda, Collins L.L.C, a Chicago-based private equity firm.
Gino Sabatini, a Director at W. P. Carey, said, “Private equity firms and their portfolio companies continue to capitalize on the current interest rate and real estate environment by securing long term financing. In this case we were able to work with Optronics management to structure a sale-leaseback financing of two facilities that supported their acquisition of the assets of Primos, Inc. as part of their long term corporate strategy. From our standpoint the investment fits our parameters of investing in assets that are critical to ongoing operations of the tenant.”
Louie Crider, Optronics’ CFO, added, “Realizing the current cash value of these assets to structure an attractive financing package for our acquisition of the Primos assets worked extremely well for us. The
W. P. Carey team was able to not only assess these buildings from a real estate point of view, but also understand their role in the overall context of our operations. The results of their combined financial and real estate analysis provided the basis for an attractive valuation that enabled us to maximize the proceeds of the financing.”
Alex Miller, Managing Director at private equity firm Svoboda, Collins, a major investor in Optronics, noted, “A timely closing of all components of the acquisition transaction was critical. W. P. Carey was able to streamline the due diligence, documentation and closing process in order to meet this requirement and thereby allow us to use the proceeds to support the purchase of Primos.”
Optronics Products, Inc.
Optronics, headquartered in Muskogee, Oklahoma, is a leading designer and marketer of a diverse portfolio of niche, specialty lighting and outdoor products. The Company offers innovative products in two primary categories: (i) recreational outdoor products, such as spotlights, headlamps, fish and gun lights, marine lights, compasses, optic products and boot dryers and (ii) vehicular lights, driving lights and vehicular accessories. The Company markets its product portfolio across multiple distribution channels, including mass merchandisers, automotive retailers, outdoor and sporting goods retailers and original equipment manufacturers of recreational vehicles, trailers and boats. www.optronicsinc.com.
Primos, Inc.
Primos, headquartered in Jackson, Mississippi, is the nation’s leading designer, manufacturer and marketer of game calls and accessories to the outdoor hunting industry. A few of the Company’s more notable branded products include the company’s best selling product, The CAN®, Hoochie® Mama, Buck Roar™, and B-Mobile™. The company is also known for its TRUTH video series and its award-winning TV show “Primos TRUTH About Hunting”, which airs weekly on the Outdoor Channel. For more information, please visit www.primos.com.
Svoboda, Collins L.L.C.
Svoboda, Collins L.L.C. is a Chicago-based private equity firm with over $200 million of committed capital. Founded in 1998, Svoboda, Collins identifies, invests in and helps build excellent businesses in its targeted business niches: consumer products, value-added distribution, and business services. www.svoco.com.
W. P. CAREY & CO. LLC
Founded in 1973, W. P. Carey & Co. LLC is a leading global real estate investment firm. The Company provides asset management services to its CPA® series of income generating real estate funds, which collectively comprise the W. P. Carey Group. With over $4 billion in equity capital, the W. P. Carey Group is one of the largest providers of net lease financing for corporations worldwide. The Group owns more than 700 commercial and industrial properties in 13 countries, representing approximately 94 million square feet, valued at approximately $8 billion. www.wpcarey.com
This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the company's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the company, reference is made to the company's filings with the Securities and Exchange Commission.
