NEW YORK, NY, February 7, 2005 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it acquired and leased back a warehouse and manufacturing facility from Pittsburgh, Pennsylvania-based Precise Technology, a leading manufacturer of injection molded precision plastic products, for $16.4 million. This represents W. P. Carey’s second sale-leaseback transaction with Precise Technology, a portfolio company of Chicago, Illinois-based private equity firm Code Hennessy & Simmons LLC.
The transaction was completed on behalf of Corporate Property Associates 16 – Global Incorporated (CPA®:16 - Global), a member of the $7 billion W. P. Carey Group of income generating, publicly held, non-traded real estate investment trusts (REITs). The facility, totaling 264,000 square feet, is located in Buffalo Grove, Illinois and will be leased back for an initial period of 20 years. Precise Technology has the option of maintaining control of the facility for an additional 20 years after the initial lease term expires.
In October 2003, W. P. Carey, on behalf of its affiliate Corporate Property Associates 15 (CPA®:15), acquired five office, manufacturing and warehouse facilities from Precise Technology for $29.3 million. The facilities, totaling more than 616,000 square feet, are located in Buffalo Grove, Illinois; Excelsior Springs, Missouri; Pittsburgh, Pennsylvania; St. Petersburg, Florida and West Lafayette, Indiana.
Anne Coolidge Taylor, Managing Director of W. P. Carey & Co. LLC, said, “This financing transaction is another example of our success in meeting the ongoing capital needs of our tenant-clients. We are pleased to have worked with Mark Dolfato and his team at Code Hennessy & Simmons, who continue to benefit from monetizing the real estate assets of their portfolio companies.”
Mark A. Dolfato, Vice President of Code Hennessy & Simmons LLC, said, “This sale-leaseback transaction allowed us to monetize the true value of Precise’s real estate assets which strengthened the company’s balance sheet and improved its future financing alternatives.”
PRECISE TECHNOLOGY, INC.
Precise Technology is a full service injection molder of high quality, precision, thermoplastic packaging components and assemblies. The Company is headquartered in Pittsburgh, Pennsylvania, has 11-injection molding and three mold-making facilities located throughout the eastern half of the United States as well as one injection molding facility in the Netherlands.
CODE HENNESSY & SIMMONS LLC
Founded in 1988, Code Hennessy & Simmons LLC (“CHS”) is a Chicago-based private equity firm that manages approximately $1.5 billion of capital in four funds. CHS focuses on building shareholder value in middle market companies through strong relationships with management teams and sound investment strategies. CHS targets majority-ownership opportunities in companies valued between $50-$400 million and has completed over 160 transactions in its fifteen year history. www.chsonline.com
W. P. CAREY & CO. LLC
Founded in 1973, W. P. Carey & Co. LLC specializes in helping companies and private equity firms realize the capital tied up in their real estate assets. Whether used for buyouts, add-on acquisitions, recapitalizations or growth, net lease financing provides access to 100% of the real estate's value enabling companies to maintain complete operational control. Acting as principals in transactions from $5 million to $500 million, W. P. Carey and its affiliates have committed approximately $3 billion over the last three years and now manage more than $7 billion in assets. www.wpcarey.com/finance
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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.