TUCSON, Ariz., Oct. 8, 2002 (PRIMEZONE) -- Renegade Venture (NEV) Corporation, a public Nevada corporation (OTCBB:RDVN), announced that it has inked an agreement with General Motors Acceptance Corporation (NYSE:GJM) to buy the assets of Complete Controls, Inc.(CCI), an airframe and control surfaces remanufacturing company. The purchase price is $1.5 million in cash, and the purchase terms include a small down payment and payment of the balance over three years. Renegade is already engaged in the aviation industry through its wholly owned subsidiary, Hamilton Aerospace.
Ian Herman, Renegade CEO, stated, "This acquisition and its terms are extraordinarily advantageous for Renegade, since we are acquiring a 'state of the art' facility full of aviation assets and parts that we can use or sell, at only 15 cents on the dollar. We anticipate comfortably paying off the balance of the purchase price out of cash flow generated by re-igniting the Complete Controls business, which we can do easily and almost instantaneously following closing." Mr. Herman emphasized that, "This acquisition is an astonishing coup for a company that entered the aviation industry only in the second quarter of this year. We believe it indicates the confidence GMAC has in Renegade and our operating plan."
CCI engages in the service of large commercial jet aircraft and can remanufacture control surfaces and airframes, including both repair and modifications. The CCI assets include highly sophisticated diagnostic repair facilities and equipment. Acquiring the CCI assets will allow Hamilton to considerably broaden the nature and sophistication of the work it does on large jetliners, and obtain lucrative contracts it cannot now accept. Complete Controls ceased operations this year when GMAC, the principal creditor, took it over. CCI is one of only four certified AIRBUS airframe component repair facilities in North America.
According to Herman, "The Complete Controls acquisition will significantly advance Renegade's plan to grow revenues and cash flow and to increase both its profile and stature in the aviation industry. This new business will not only add greatly to shareholder value, but will allow us to service a far broader range of customers than Hamilton Aerospace alone. Closing on this acquisition and starting the Complete Controls business back up will take additional capital, which we are actively seeking now."
John Sawyer, Hamilton's Chief Operating Officer, said, "Complete Controls is headquartered on the property adjacent to our existing operations on the tarmac of the Tucson International Airport. The Complete Controls business can be quickly rebuilt to a cash flowing level, especially given the similarity of its business to that of Hamilton Aerospace, and will allow us to take in potential business we've been forced to turn away. We will also get a huge benefit from the sophisticated diagnostic repair facilities of Complete Controls that we will acquire as part of the purchase from GMAC."
Herman also noted, "Opportunities like this that fit this well with existing operations and personnel skills, fall into your lap very seldom. The Complete Controls acquisition will allow us to take our business to the next level."
About Hamilton Aerospace Technologies
Hamilton Aerospace is a wholly owned subsidiary of Renegade that provides maintenance, engineering and modifications for large passenger jet aircraft. Customers include scheduled and charter airlines, aviation leasing companies and government entities. The Federal Aviation Administration (FAA) on May 6, 2002, awarded Hamilton Aerospace its own Part 145 Air Agency Certificate, which allows it to perform such services. Hamilton Aerospace operates from leased facilities comprising about 21 acres located at the Tucson International Airport. These facilities include hangars, workshops and other buildings.
Hamilton's website can be found at www.hamiltonaerospacetechnologies.com.
Except for any historical information presented herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995, or by the Securities and Exchange Commission in its rules, regulations, and releases. These forward- looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks include the economic health of the airline industry and concomitant demand for Renegade's services, competitive pricing pressures for Renegade's services, and the availability of financing to complete management's plans and objectives. In addition, other risks are detailed in Renegade's current report on Form 8-K filed on May 9, 2002. These forward-looking statements speak only as of the date hereof. Renegade disclaims any intent or obligation to update these forward-looking statements.
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