COSTA MESA, Calif., Dec. 22, 2005 (PRIMEZONE) -- American Pacific Corporation (Nasdaq:APFC) ("AMPAC") completed the previously announced purchase of the Aerojet Fine Chemicals business ("AFC") of GenCorp (NYSE:GY). The acquisition was announced on July 13, 2005 and closed on November 30, 2005. The purchase price of AFC was $114.0 million plus a contingent payment of up to $5.0 million, as well as the assumption by AMPAC of certain liabilities. Concurrent with the transaction, AMPAC completed a debt financing to fund the acquisition.
RSM EquiCo Capital Markets acted as the corporate finance advisor for AMPAC. The firm successfully arranged $120.5 million in financing to facilitate the transaction, which consisted of a $75 million secured revolving and term loan facility, $20 million second lien term facility and a $25.5 million subordinated seller note.
"Both companies enjoy exceptionally strong competitive positions within their respective niche markets," said Jean Cayanni, senior managing director of global relations for RSM EquiCo. "Acquiring AFC will allow AMPAC to strengthen its presence, particularly in the pharmaceuticals market."
"This transaction is another example of our firm executing on its strategy to grow its investment banking capabilities beyond our sell-side model. It also demonstrates our ability to successfully leverage our collective experience across multiple industry sectors and product groups, specifically in the chemical and aerospace and defense sectors, as well as corporate finance," said Hector Cuellar, president of RSM EquiCo Capital Markets."
About RSM EquiCo
RSM EquiCo (www.rsmequico.com) is a global provider of investment banking services, primarily to private companies with annual revenues of up to $500 million. The firm brings together companies, capital and creativity on a national and international scale to help clients achieve their personal and strategic objectives. RSM EquiCo's financial resources, in-depth research capabilities, industry knowledge, banking expertise and ability to access national and international buyer pools on behalf of clients are unmatched in the North American midsized business arena.
RSM EquiCo is part of RSM McGladrey Inc., a business segment of H&R Block. RSM EquiCo is licensed by the SEC and all state securities authorities, and is a member of the NASD and SIPC. The firm's international headquarters are located in Costa Mesa, California. It also has offices in Chicago, New York, Boston and London.
About American Pacific Corporation
American Pacific is a specialty chemical company that produces (i) energetic products used primarily in space flight and defense systems, automotive airbag safety systems and explosives, (ii) Halotron, a clean fire extinguishing agent and (iii) water treatment equipment. In November 2005, American Pacific acquired the former Aerojet Fine Chemicals business. Ampac Fine Chemicals, as it is now known, is a leading manufacturer of active pharmaceutical ingredients and registered intermediates under cGMP guidelines for commercial customers in the pharmaceutical industry, involving high potency compounds, energetic and nucleoside chemistries, and chiral separation. In 2004 American Pacific acquired the former Atlantic Research Corporation liquid in-space propulsion business. Ampac-ISP, as it is now known, is a leading supplier of commercial and military propulsion products and the world's largest producer of bipropellant thrusters.
About GenCorp
With 3,000 employees, GenCorp is a technology-based manufacturing firm focused in aerospace and defense and real estate. The aerospace and defense segment includes GenCorp's wholly owned subsidiary, Aerojet, which is engaged in the development and production of solid and liquid rocket propulsion systems and related defense products and services.